Indian Bank IPO opens on February 5

Nagpur, Feb 1 (UNI) Chennai-based 100-year old Indian Bank enters the capital market on February 5 with an initial public offer (IPO) of 85,950,000 equity shares of Rs 10 each, for cash at a premium to be decided through 100 per cent book-building process.

Company General Manager (Technology Management) Prakash Joshi told reporters Indian Bank was the first public-sector bank in the country to come out with an IPO through the book-building process.

The price band for the IPO, which opens on February 5, has been fixed between Rs 77 and Rs 91 per share. The Government of India's equity holding of 20 per cent in bank was being diluted through the issue, Mr Joshi said. Post-issue, the government's holding would be reduced to 80 per cent, he added.

The IPO was being to tap the market to augment the bank's capital base to meet future capital requirements arising out of the implementation of the Basel II standards, and also to grow its assets, primarily the loan and investment portfolio.

The bank had reserved 10 per cent of the issue for allocation to eligible employees, Mr Joshi said adding that of the balance, 60 per cent would be allotted to qualified institutional buyers (QIB), 10 per cent to non-institutional bidders, and the remaining 30 per cent to retail investors on a proportionate basis.

The issue will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Indian Bank has 1,408 branches across 26 states and three union territories in the country, besides branches in Singapore and Colombo, Sri Lanka.

UNI