South Indian Bank’s rights issue, which opened for its shareholders on February 28, 2017 will end on March 14. The last date to submit the split application form however was March 7. Split application form is mostly used for transferring the rights to another shareholder.
The board of directors of South India Bank approved the rights issue in the ratio of 1:3 i.e one share for every three fully paid-up equity shares held in the bank. The rights can be exercised at Rs 14 per share. February 17 was the record date for the issue and the date decided the eligible shareholders for the rights issue.
The rights issue will help South Indian Bank augment the paid-up capital. The stock of South Indian Bank has given returns of nearly 27% over one year period and has underperformed the BSE Banked index which has delivered returns of over 34%.
ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, JM Financials Mutual Funds and Reliance Mutual Funds have recently invested in the counter.