Bank CEO granted 1.5 lakh shares under ESOS at Rs7.25 apiece
KOCHI: The South Indian Bank (SIB) plans to raise up to Rs1250 crore through a combination of equity and debt. While the bank intends to raise up to Rs750 crore through the issue of equity shares – private placement or public issue – up to Rs500 crore will be sourced through the issue of debt.
The board has already proposed the fund raising plan at its meeting on September 4, and this will have to be ratified by the regulators and the shareholders of the bank at their annual general meeting (AGM) convened on September 29.
SIB is sitting on one of the lowest capital adequacy ratios (CAR) in the industry, at below 13.50 per cent, meaning that the bank may not be able increase its business meaningfully – loans or investments, in the absence of additional capital.
ESOS grant for VG Mathew
The SIB’s MD and chief executive, VG Mathew, has got his last bonanza from the bank in the form of grant of 1.5 lakh options on September 4 as part of the bank’s ESOS, even as he has started the count-down to his last day in the office as bank’s helmsman on September 30,.
As decided by the nomination and remunerations committee/board, each option with a face of Re 1 was given to Mathew at a price of Rs7.25 per option against a market closing share price of Rs7.45 on NSE (on September 4).
This offer price will work out just 2.68 per cent discount to the closing price.
SIB share price has been lying low on the market for the past couple of months with the highest traded price during the last 6 months was at about Rs9 per share.
The options will be vested as per SIB ESOS Scheme 2008 and the time line for vesting the options has been drawn up as two years to four years from the date of grant, according to an SIB statement.