City Union Bank allots 68 lakh shares on pref basis

Having got the Reserve Bank’s approval and the shareholders’ nod for raising capital through issue of 68 lakh equity shares of Rs 10 each at a premium on preferential basis, the Kumbakonam-headquartered City Union Bank today went ahead with the allotment. The bank has allotted 3 lakh shares to L&T and 15 lakh shares to LIC at Rs 169.15/share, while fixing the rate at Rs 190 each for the 15 lakh shares allotted to FMO, Netherlands, 12.5 lakh shares each to Ares Investments LLC and Argonaut Ventures and 10 lakh shares to Yatish Trading Company. The allotment in exchange for cash has aggregated to Rs 125.45 crore. It would enhance its capital from Rs 25.2 crore to Rs 32 crore. The total holding by FIIs/NRIs, post this preferential issue, would be a little over 19 per cent against the 24-per cent norm.