Indian Bank files Draft Red Herring Prospectus

Mumbai, Dec 2: A leading public sector bank which boasts of the largest network of branches in Tamil Nadu, Indian Bank, a today announced that they have filed their Draft Red Herring Prospectus (DRHP) with the Securities&Exchange Board of India (SEBI) with a proposal to enter the capital market with it's initial public offering of equity shares.

It proposes to offer 85,950,000 equity shares of Rs 10 each for cash at a premium to be decided through 100 per cent book-building process. The offer will constitute 20 per cent of the post issue fully diluted paid up equity capital.

The Bank has proposed to reserve 8,595,000 equity shares for allotment to employees and the balance 77,355,000 equity shares would constitute the net offer to public. Of the net offer to public, 60 per cent shall be allotted to qualified institutional buyers, of which 5 per cent would be allotted to mutual funds.

Further, 10 per cent shall be available for allocation to non-institutional bidders and the balance 30 per cent shall be available for allocation to the retail investors on a proportionate basis.

India Bank has 1,408 branches in India spread over 26 states and 3 union territories, besides, a branch in Singapore and another one at Colombo in Sri Lanka. In all, the Bank as on September 30, 2006 has over 18.1 million customers.

The Book Running Lead Managers to the Issue are SBI Capital Markets, Enam Financial Consultants, ICICI Securities and Kotak Mahindra Capital Company, the bank said in a statement here.

UNI