Allahabad Bank ex­empted from open of­fer

India Business Journal - - NEWS ROUND-UP -

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.

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