Indian Bank FPO : Likely by next June

by khalid on 05/12/2010 · 0 comments

Chennai-headquartered Indian Bank is a public sector bank. The Bank established in 1907 and has 22,000 employees, 1,657 branches and is one of the big public sector banks of India. It has overseas branches in Colombo, Sri Lanka, Singapore. The Government of India nationalized the bank, along with 13 other major commercial banks, on 19 July 1969.The bank plans to come up with a follow-on public offer (FPO) by next June. The bank will file the DRHP (draft red herring prospectus) with the market regulator SEBI by April 2010 and come out with the issue in end May or June 2011.

Indian Bank plans to raise up to Rs 1,600-crore through this proposed follow-on public offer (FPO). The bank will issue 10% fresh shares in addition to its current equity base of around 430 crore shares and as per current market price of the Indian Bank scrip the issue size would be around Rs 1,600 crore. At present the government holds 80% equity and post FPO it will come down to 71%.

Issue Detail:-
Issue Open : Likely in June 2010
Issue Type : 100% Book Built Issue IPO
Issue Size : 43 crore Equity Shares of Rs 10 each
Issue Size : Rs. 1,600 Crores
Face Value : Rs 10 Per Equity Share
Issue Price : Rs. – Rs. Per Equity Share
Market Lot : Shares
Minimum Order Quantity : Shares
Listing At : Already listed in BSE, NSE

The objects of the fresh issue :- The proceeds from the FPO will be used for augmenting its capital adequacy ratio and lend more to customers.

Stay tuned to BelltheBull Blog for more on Indian Bank FPO !

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