Bank of Baroda (BSE:532134) announced a private placement of common shares with existing investor, Government of India for gross proceeds of INR 5,500,000,000 on December 3, 2013. The price per share will be decided as per Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations. The shares will be issued on a preferential basis. The board of directors of the company approved the transaction. The transaction is subject to compliance of all applicable laws/ regulations & approvals. The company expects to receive approval by shareholders of the company at its Extra Ordinary General Meeting to be held on January 15, 2014.

On January 15, 2014, the company announced that the shareholders approved the transaction in its Extra Ordinary General Meeting. The company will issue 8,158,784 shares at INR 674.12 per share for gross proceeds of INR 5,499,999,470.08.

On January 18, 2014, Bank of Baroda closed the transaction. The shares issued in the transaction will be subject to a lock period till February 10, 2017.