The Reserve Bank has accorded approval to Jammu & Kashmir government to acquire over 16.76 crore shares in J&K Bank on preferential basis.
"The RBI vide its letter dated September 2, 2021 has accorded approval to Government of Jammu & 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," J&K Bank said in a regulatory filing.
In August, the lender had said that Sebi had exempted the Jammu & 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 on April 1, the bank had said the Jammu & Kashmir government, as its promoter shareholder, has committed to infuse capital of up to Rs 500 crore in the bank. In a separate filing, the lender said it has extended the issue closing date of J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS 2021) to September 7, 2021 due to "prevailing circumstances".
The issue under the employee stock purchase scheme (ESPS) was to close on September 3. The issue opened on August 27. Under the ESPS, J&K Bank aims to raise up to Rs 150 crore by issuing 7.5 crore equity shares, in one or more tranches, to eligible employees of the bank.