State Bank of Travancore (SBT) is planning to raise Rs 474 crore via a rights issue.
For every five equity shares held by shareholders, they will be able to subscribe to one share under the rights issue. The issue price is pegged at Rs. 400 (Face value: Rs. 10 and premium: Rs. 390) per share.
As on December-end 2014, SBI held 78.91 per cent stake in SBT; domestic institutional investors (2.74 per cent), foreign institutional investors (1.99 per cent); non-institutions (16.36 per cent); and Bodies Corporate (2.26 per cent).
The number of equity shares to be issued under SBT’s rights issue will be about 1.18 crore and the shares that will be outstanding post issue will be about 7.11 crore. SBT is one of State Bank of India’s five associate banks.
In a notice to the BSE, the bank said for equity shares being offered on a rights basis under this issue, if the shareholding of any of the eligible equity shareholders is less than 5 equity shares or not in the multiple of 5, the fractional entitlement of such shareholders will be ignored.
However, eligible equity shareholders whose fractional entitlements are being ignored would be given preferential consideration for the allotment of one additional equity share each if they apply for additional equity shares over and above their rights entitlement, if any.
The decision on right issue was taken by SBT’s board of directors on Friday.
SBT shares closed at Rs 540.05 per share, up 2.15 per cent over the previous close.