Bank of India to raise Rs 642 crore by selling shares to LIC, New India

State-owned Bank of India (BoI) today said it will raise up to Rs 641.99 crore by selling shares to Life Insurance Corp and New India Assurance Company to fund its business growth and meet global risk norms.

The bank has decided to issue and allot up to 2.26 crore of Rs 10 each for cash at Rs 283.50 per share, including premium of Rs 273.50 per equity share, at a price as determined in accordance with Sebi regulation aggregating up to Rs 641.99 crore on preferential basis, BOI said in a notice to the BSE.

The bank has called extraordinary general meeting of the shareholders on March 7, it said.

LIC currently holds 12.53% stake in Bank of India. Following the fresh investment, stake of LIC would further go up.

Shares of the bank closed at Rs 233.15 per unit, down 5.33% on the BSE.