BoB shareholders to meet next month to consider capital raise under ESPS

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New Delhi, Dec 26: Shareholders of Bank of Baroda will meet next month to consider issuing up to 10 crore new shares under Employee Share Purchase Scheme (ESPS).
An extraordinary general meeting of the shareholders will be held on January 21 to consider the proposal, Bank of Baroda (BoB) said in a BSE filing Wednesday.
The shareholders will meet to approve issuance of up to 10 crore fresh equity shares to employees and whole time directors of the bank in one or multiple tranches under ESPS, it said.
The bank said the issue price under ESPS has to be decided by the board and it will be in a way so that the government holding does not come below 52 per cent.
Out of the total capital raising plan for 2018-19, the bank’s board has decided to issue up to 10 crore shares with a face value of Rs 2 each, at an appropriate premium, it added.
“The object of the issue, apart from raising of long-term resources is to enable the bank to attract, retain and reward employees for our bank by sharing the value created by them and to motivate them to contribute to the growth and profitability of the company,” it said in the filing.
Besides, the fund mop-up aims to shore up the capital adequacy and to fund the general business needs of the bank, it said further.
All permanent employees of the bank including the MD&CEO, and executive directors are entitled to participate in the BoB-ESPS, it added.