Rediff India Abroad
 Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Home > Business > Business Headline > Report

UTI Bank to raise $250 m via GDRs

BS Banking Bureau in Mumbai | January 18, 2005 09:11 IST

The UTI Bank board on Monday approved the bank's plan of raising around $200-250 million through an issue of global depository receipts before March 2005, drawing the curtains on the controversy over the new generation private sector bank's capital raising plans.

The proposed capital raising will lead to 20 per cent dilution in shareholding. After the capital infusion, the holding of the Specified Undertaking of the UTI (UTI-I) in the bank will come down from 33.32 per cent to around 27 per cent, LIC's holding will slip from 13 per cent to about 11.5 per cent and GIC's holding from 3 per cent to around 2.5 per cent.

Post issue, the foreign holding in the bank would go up from the existing 32 per cent to around 43 per cent, said UTI Bank Chairman and Managing Director PJ Nayak.

The board approved a proposal to raise capital, in one or more tranches, by way of an international offering, Nayak said.

The maximum number of ordinary shares to be issued shall not exceed 46.56 million, he added. On the Bombay Stock Exchange, the UTI Bank stock ended the day at Rs 196.55, up 4.49 per cent over the previous close of Rs 188.10.

The money would support the bank's growth for the next three years, Nayak said. A fresh infusion of capital will enable the bank boost its capital adequacy ratio from 9.38 per cent to above 11 per cent.

"We would list on the London Stock Exchange and also get a Section 144 (A) filing done with the Securities and Exchange Commission in the US which will give us access to US institutional investors," said Nayak.

"A GDR issue will enable the bank widen its investor base," he added.

Powered by

Share your comments


Copyright 2006 India Limited. All Rights Reserved.