SRINAGAR: The Reserve Bank of India- (RBI) has given its approval to Jammu and Kashmir government to acquire 16.77 crore shares in J&K Bank.
“The Reserve Bank of India vide its letter dated September 2, 2021, has accorded approval to Government of Jammu and Kashmir to acquire 16,76,72,702 fully paid up equity shares on preferential basis, i.e, up to 74.24 per cent of the post issue paid-up voting equity capital of the bank, subject to compliance of regulatory requirements,” the lender said in a regulatory filing, reported Livemint.
J&K Bank had said in August that the market regulator Securities and Exchange Board of India (SEBI) had exempted the Jammu and Kashmir government from complying with its norms on substantial acquisition of shares and takeovers in the proposed acquisition of 16,76,72,702 equity shares (6.06 per cent) of the bank during 2021-22.
Earlier this year on April 1, the bank had said the Jammu and Kashmir government, as its promoter shareholder, has committed to infuse capital of up to Rs 500 crore in the bank.
In a separate filing, J&K Bank said it has extended the issue closing date of J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS 2021) to September 7, 2021, on account of “prevailing circumstances”. Compensation Committee of Board of Directors of the bank has approved the extension, the lender added.
The issue under the employee stock purchase scheme (ESPS) opened on August 27, and was scheduled to close on September 3. J&K Bank aims to raise up to Rs 150 crore by issuing 7.5 crore equity shares under the ESPS, in one or more tranches, to eligible employees of the bank.
J&K Bank shares ended Friday at Rs 36.70 on BSE, marginally lower by 0.05 points or 0.14 per cent, reported Livemint.