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| UCO Bank to pick 30% in general insurance venture |
| Press Trust of India / Kolkata Jul 03, 2009, 21:24 IST |
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UCO Bank today said it will tie up with domestic and foreign entities to float a general insurance company, in which the Kolkata-based lender will pick up 30 per cent stake.
"We would be picking up 30 per cent stake in the general insurance venture whose capital base would be Rs 150 crore," UCO Chairman and Managing Director S K Goel said today.
The bank would invest about Rs 45 crore in promoting the proposed general insurance company, he said.
The Kolkata-based bank would also issue shares worth Rs 136 crore through a follow-on public offer, Goel said.
He, however, refused to divulge the identity of the other partners, but said a foreign entity would pick up 26 per cent stake in the proposed joint venture and the rest would be taken by domestic entities.
UCO Bank today obtained shareholders' approval for the follow-on offer at the AGM.
"We are eyeing a price of not less than Rs 50 a share for our FPO which would probably be launched during September-December period," Goel said.
The FPO would bring down the government's stake in the bank to 52 per cent from the current 64 per cent, he said.
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