Allahabad Bank surges on plan of raising Rs 500 crore via issue of equity shares

Allahabad Bank - (Amalgamated) | Bank - Public | BFSI | BSE: 532480 | NSE: ALBK

06 Sep 2016 Evaluate

Allahabad Bank is currently trading at Rs. 85.30, up by 0.85 points or 1.01% from its previous closing of Rs. 84.45 on the BSE.

The scrip opened at Rs. 85.30 and has touched a high and low of Rs. 85.75 and Rs. 84.65 respectively. So far 201327 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 86.45 on 31-Aug-2016 and a 52 week low of Rs. 39.50 on 12-Feb-2016.

Last one week high and low of the scrip stood at Rs. 86.45 and Rs. 77.10 respectively. The current market cap of the company is Rs. 6156.63 crore.

The promoters holding in the company stood at 67.21%, while institutions and non-institutions held 21.23% and 11.56% respectively.

Allahabad Bank is planning to raise up to Rs 500 crore by issuance of equity shares to qualified institutional buyers (QIBs). In this regard, the bank will seek nod of its Board of Directors at the extraordinary general meeting scheduled September 28.

Allahabad Bank said it will create, offer and issue shares of face value of Rs 10 each for cash at an issue price including premium to QIBs on QIP in such a manner so that government will continue to hold not less than 52 per cent of the paid-up equity capital of the bank.

Further, the allotment of equity shares to QIBs will be completed within 12 months from the date of the passage of the resolution.