South Indian Bank Rights Issue Date 2024, Share Price, History, Allotment Status and More Details

News: South Indian Bank, a prominent private sector bank in India, has announced a rights issue in 2024. In this article, we delve into the details of this significant financial event, including the issue date, share price, historical context, and allotment status.

What Is a Rights Issue?

Before we dive into the specifics, let’s understand what a rights issue entails. A rights issue is an invitation extended to existing shareholders of a company. It allows them to purchase additional shares at a discounted price within a specific period. Unlike an Initial Public Offering (IPO), which is open to the general public, a rights issue is exclusively offered to existing shareholders in proportion to their current holdings.

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South Indian Bank Rights Issue 2024

Here are the key details of South Indian Bank’s rights issue:

1. Issue Price: The rights issue price is set at ₹14 per share.

2. Ratio: Shareholders can subscribe to the rights issue in the ratio of 1:3. This means that for every three fully paid-up equity shares held in the bank, shareholders are entitled to purchase one additional share.

3. Duration: The rights issue opens on February 26, 2024, and closes on March 14, 2024.

Why a Rights Issue?

Companies opt for rights issues for several reasons:

1. Capital Infusion: A rights issue helps raise capital by allowing existing shareholders to invest further.

2. Debt Reduction: Funds generated through the rights issue can be used to reduce debt.

3. Business Expansion: Companies use the proceeds to fuel growth initiatives.

Historical Context

South Indian Bank has a rich history dating back to its establishment in 1929. Over the years, it has played a crucial role in the banking sector, serving customers across India. The rights issue in 2024 reflects the bank’s commitment to strengthening its financial position and supporting future endeavors.

Allotment Status

Shareholders who participate in the rights issue will eagerly await the allotment status. Once the subscription period ends, the bank will allocate shares to eligible shareholders based on their entitlements.

About South Indian Bank :

Establishment

1. South Indian Bank was registered in 1929 under the Companies Act.

2. It commenced its banking operations on January 29, 1929, at Round South in Thrissur.

3. The bank was included in the second schedule of the Reserve Bank of India and became a scheduled bank on August 7, 1946.

4. Notably, it was the first scheduled bank in the private sector in Kerala to obtain a license under Section 22 of the Banking Regulation Act, 1949 from the RBI on June 17, 1957.

Key Information

• Chairman: V J Kurian
• Managing Director & CEO: P R Seshadri
• Revenue (FY 2021-22): ₹7,620.64 Crores
• Operating Income (2017): ₹1,507 crore (US$190 million)
• Net Income (2023): ₹775.00 crore (US$97 million)
• Total Assets (FY 2022-23): ₹1,07,698.00 Crores
• Number of Employees (As of March 31, 2023): 9,678
• Subsidiary: SIB Operations and Services Limited
• Capital Ratio: 17.25%

Services Offered

South Indian Bank provides a wide range of banking services, including:

• Personal Banking
• NRI Banking
• Business Banking
• Online Banking

South Indian Bank’s rights issue presents an opportunity for existing shareholders to participate in the bank’s growth journey. By subscribing to the rights issue, shareholders can contribute to the bank’s capital base and be part of its continued success.

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FAQs

1. What is a Rights Issue?

A Rights Issue is a method for a company to raise funds by offering its current shareholders the opportunity to buy additional shares at a discounted price.

2. How can I take part in South Indian Bank’s Rights Issue?

To participate in South Indian Bank’s Rights Issue, you must be an existing shareholder. You will receive a letter of offer containing instructions on how to exercise your rights to purchase additional shares.

3. What advantages come with participating in a Rights Issue?

Engaging in a Rights Issue allows current shareholders to expand their ownership in the company at a lower cost. This has the potential to enhance their overall investment returns over the long term.