DCB fixes price band between Rs 22 and Rs 26

Hyderabad, Sep 29 (UNI) Development Credit Bank Limited (DCB), one of India's private sector banks promoted by the Switzerland-based Aga Khan Fund for Economic Development (AKFED), fixed the priced band between Rs 22 and Rs 26 per share for its forthcoming Initial Public Offering (IPO) of equity shares of Rs 10 each.

Talking to mediapersons a company official today said here DCB was entering the capital market with an initial public issue of 71,500,000 equity shares of Rs 10 each. The price was to be determined through a 100 per cent book build process, the official added.

The issue would open for subscription on September 29, 2006 and close on October 6, 2006.

The issue would comprise of a reservation of 2,502,500 equity shares for eligible employees and the net issue to the public would be for 68,997,500 equity shares.

The company official said the issue would help the bank strengthen its capital base and also help to meet the capital adequacy norms required by Basel II, recommended by the Reserve Bank of India.

In February 2006 the bank raised private equity capital of Rs 51.9 crore to strengthen the capital base. Post-IPO, the AKFED holding sailed down to 39 per cent from 51 per cent, its present equity stake in DCB, the official added.

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