Bank of Maharashtra will tap the capital market on February 25 to raise Rs 230 crore (Rs 2.30 billion), which would be used for both organic and inorganic expansion.
"We will expand in those areas where there is business potential," BoM chairman S C Basu said launching its initial public offer in Chennai on Monday.
The bank currently has 1,251 branches, 37 extension counters and 30 regional office spread across the nation.
BoM has also kept options open for acquisitions of other banks in the near future, as it has done in the past.
The bank, promoted by the Maharashtra Chamber of Commerce 68 year ago and nationalied in 1969, had grown over the years through a string of acquisitions of banks like Bank of Konkan, Bank of Nagpur, Bharat Industrial Bank and Banthia Bank.
The Pune-based bank plans to raise Rs 230 crore from the IPO of 10 crore (100 million) shares at a price of Rs 23 per share -- face value of Rs 10 and a premium of Rs 13. BoM will offer 10 per cent of the IPO to its employees.
The government holding will come down by 23.23 per cent after the IPO and the bank's capital adequacy ratio will go up to 14.35 from 12.05 per cent, Basu said.
The equity base of the bank would go up by Rs 100 crore (Rs 1 billion) to Rs 430.52 crore (Rs 4.305 billion).
The IPO opens on February 25 and close on March 4, he said, adding the share will be listed in major bourses by March 31.
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