Bank of Maharashtra plans to raise 25.23 billion rupees through the issuance of 968,894,009 shares to the Indian government on a preferential basis.
The bank said Feb. 1 that it will issue the shares at 26.04 rupees apiece. The issuance will be carried out in line with the government's plan to inject 31.73 billion rupees into the lender, which has already received 6.50 billion rupees of the funds.
Following the proposed capital injection, the government's stake in the bank will increase to 87.01% from 75.54%. As public shareholding will decrease to less than 16%, Bank of Maharashtra decided to cancel the proposed election of an additional shareholder director to its board.
The lender is one of the state-owned banks that will receive capital under the government's two-year, 2.11-trillion-rupee recapitalization plan.
As of Feb. 1, US$1 was equivalent to 64.00 Indian rupees.
