Allahabad Bank exempted from open offer
The SEBI has exempted the Central government from making an open offer for the shareholders of Allahabad Bank following capital infusion. In January this year, the government had proposed capital infusion to the tune of Rs 1,500 crore in the public sector lender. Following the capital infusion in the public sector lender, the government's stake will rise in it by 7.03 per cent. Under the SEBI's norms, if the shareholding of an entity in a listed company goes beyond a particular threshold, it has to make an open offer. The SEBI has dispensed with the open offer in this case, as there will be no change in control of the lender after the capital infusion.