The bank may issue shares in tranches to employees and will complete the transactions in this financial year.
Allahabad Bank has announced to offer an employee stock option scheme, under which it will offer five crore ordinary shares to its employees.
Allahabad Bank becomes the first public sector bank to make such an offer.
The proceeds from share sale will be used to raise the badly needed core capital for the Bank, which has long ago been placed under prompt corrective action by the Reserve Bank.
According to the Bank, the issue prices of the programme, officially called the employee share purchase scheme (ESPS), was cleared by shareholders at an extraordinary general meeting and will be decided by the board. Therefore, how much it will be able to raise cannot be figured out now.
“The price at which these shares will be issued would be decided by the board or committee of directors”, the Bank said in an exchange filing. Normally, an employee stock option comes at a good discount.
The Bank may issue shares in tranches to employees and will complete the transactions in this financial year.