UTI Bank to raise funds via GDR

MUMBAI: UTI Bank on Friday said it will tap the overseas market as part of its plans to raise over Rs 4,000 crore to meet increasing credit demand and new capital norms.

The company would issue 1.41 crore equity shares in the overseas market, besides offering 3.19 crore shares to its promoters on preferential basis.

In a notice to the Bombay Stock Exchange, UTI Bank said the board has decided to raise capital by way of Qualified Institutional Placement (QIP) of 2.82 crore shares and a GDR issue of 1.41 crore equity.

Going by today's market price of Rs 641.25, the bank could raise over Rs 2,711 crore from the market.

"The price for the preferential issue, GDR and QIP offering would be aligned and subsequently decided through the book building route," Bank President Finance Somnath Sengupta said.

Seven promoters including -- specified undertaking of the Unit Trust of India hold 27.33 per cent, while LIC and GIC together have 42.93 per cent stake in the bank.

"We have received the approval for the preferential issue from SUUTI and LIC. GIC and other promoters have time till July 26 to decide on subscribing to the issue," Sengupta said.

The shareholders in its EGM held today have approved raising of Tier-I capital by way of GDRs and issue to the promoters.

Shares of the bank surged to a 52-week high of Rs 658.70 during the day, but closed at Rs 641.25 up 0.02 per cent on the Bombay Stock Exchange.

For the quarter ended June 30, the bank posted a 45.15 per cent rise in net profit at Rs 174.98 crore as against Rs 120.55 crore in the Q1 of previous fiscal.

Source: Economic Times

Mexican Slim zips past Bill Gates in rich ranks: Report

Mexican tycoon Carlos Slim is the world’s richest man, worth an estimated $67.8 billion, after overtaking Microsoft Corp. founder Bill Gates

Mexico City: Mexican tycoon Carlos Slim is the world’s richest man, worth an estimated $67.8 billion, after overtaking Microsoft Corp. founder Bill Gates, according to a respected tracker of Mexican financial wealth on 2 July.

Mexican tycoon Carlos SlimA 27% surge in the share price of America Movil, Latin America’s largest cell phone operator controlled by Slim, from March to June made him close to $8.6 billion wealthier than Gates, said Eduardo Garcia in Sentido Comun, the online financial publication he founded.
Garcia estimated that Gates was worth $59.2 billion.
Forbes magazine reported in April that Slim had overtaken billionaire investor Warren Buffett for the No. 2 spot in the world’s richest stakes but was still behind Gates.
Mexico has a huge rich-poor divide, with a tiny elite holding most of the country’s wealth and around half the population living on less than $5 a day.
Forbes bumped up Slim because gains from his holding company Carso and fixed-line telecom Telmex added to the Mexican’s fortune while shares of Buffett’s Berkshire Hathaway Inc. fell in the same period.
Three months ago, Sentido Comun’s Garcia begged to differ with Forbes and calculated Slim’s wealth as more than Gates’ -- but only by a whisker. Now he says there is no doubt whose fortune is bigger at current share values.
“When I put Slim ahead three months ago Forbes bumped him up to second place (in world rankings) a few days later,” Garcia, also the publication’s editor-in-chief, told Reuters. “Let’s see if the same happens again.”
Spokespeople at Forbes magazine were not immediately available for comment.
Garcia, who uses Forbes’ calculations for US billionaires’ wealth, says the 5.7% increase in Microsoft share prices in the second quarter is no match for the sharp rise in valuations of Slim’s companies.
Shares of Telmex in the second quarter rose 11% and Slim’s bank, Inbursa, saw its stock advance 20%.
Garcia’s Sentido Comun, which translates as “common sense,” reckons Slim and his amily own a fortune equivalent to 8 percent of Mexico’s gross domestic product.
For Gates to be worth 8% of the US economy, his fortune would have to grow to more than $13 trillion, 17 times his current wealth, according to Sentido Comun.
Slim, known for his Midas touch in turning around struggling businesses and turning them into profit-making machines, told Reuters in an interview this year he was not in the habit of calculating his fortune on a regular basis.
Slim and his chief spokesman Arturo Elias Ayub were not immediately available for comment.

Source: Mint