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| UCO Bank to raise Rs 900-950 cr from FPO |
| Press Trust of India / Kolkata Oct 19, 2009, 11:04 IST |
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UCO Bank is likely to raise Rs 900-950 crore from follow-on-public offer (FPO) after a strong rally in the stock market.
"As per the current market conditions, getting a premium of Rs 60 will not be a problem. A premium of around Rs 50 a share was expected earlier," UCO Bank chairman and managing director S K Goel said.
He added the final pricing would be made later after consulting the merchant bankers. The issue has been expected to hit the capital market in January, sources said.
With revival in the stock market, UCO bank authorities had revised estimates of premium for the issue from Rs 50 to over Rs 60 a share.
The bank is likely to use the book building route for the FPO rather than fixed pricing method when the bank first hit the stock market in 2003 at a premium of Rs 2 for each share of Rs 10.
The bank has been expecting better valuation with entry into insurance business which is likely to be in place soon.
Goel said they were expecting government approval for the FPO by October and soon after the bank would initiate the process to get Sebi approval.
The bank is aiming to enhance CAR to 12 per cent from 11.75 per cent.
The bank would plan to hit the market with 13.5 crore shares of Rs 10 each. The issue would bring down the government shareholding close to 51 per cent from 63.5 per cent now.
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