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
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment