Syndicate Bank to raise up to Rs 500 crore via ESPS

New Delhi: State-owned Syndicate Bank Thursday said it will raise up to Rs 500 crore by issuing 30 crore shares to its staff under the employee stock purchase scheme.

The committee of directors on ESPS (compensation committee) in its meeting held on December 20, 2018 has approved a scheme namely Syndicate Bank Employee Stock Purchase Scheme (ESPS) to raise equity share capital up to Rs 500 crore by creating, granting and issuing up to 30 crore new equity shares to eligible employees of the bank, the lender said in a regulatory filing.

The committee has fixed the issue price at Rs 33.67 per share.

"The maximum discount is up to 25 percent for the issuance and allotment of new equity share under the scheme," it said.

Earlier on December 13, Punjab National Bank (PNB) said it had mobilised Rs 500 crore through ESPS.

As part of the scheme, the bank had issued up to 10 crore new equity shares to its employees at a discounted price of Rs 53.95 per share.

The government in March 2017, had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital.

A number of public sector banks, including Allahabad Bank, Union Bank, United Bank of India and Canara Bank, have availed the new scheme to raise funds by issuing shares to their staff.

Shares of Syndicate Bank closed 0.93 percent down at Rs 37.25 apiece on BSE.