Plans two public issues in 2006-2007

Hyderabad, Apr 8 (UNI) Public sector State Bank of Hyderabad (SBH) is planning a two-tranche entrance into the capital market sometime from July 2006 to divest about 45 per cent of its stakes, a senior bank official said today.

The size and the price band is under discussion before SBH comes out with its first IPO in the second quarter of the current financial year. The merchant banker to handle the IPO from the short list will be decided during April 2006.

The second public issue will follow ''shortly thereafter'', Bank's Chief General Manager R P Sinha said during a brief interaction with the media after SBH announced here its online money transfer tie up with UAE Exchange and Financial Services Ltd.

In the first tranche, SBH will divest about 20-25 per cent and another 20 per cent in the second offering during 2006-2007.

The recent amendment to the public sector banking major State Bank of India (SBI) Act allowed it to divest its stake upto 49 per cent in its Associate banks, which includes the SBH, to enable it raise capital to meet BASEL-II norms for capital adequacy.

UNI DB VV ADB1855