CORRECTED - South Indian Bank to raise $79mln in share sale-sources

SOUTHINDIAN-SHARES-MARKET:CORRECTED - South Indian Bank to raise $79mln in share sale-sources

 

(Corrects first paragraph to say bank is a private-sector lender, not state-run)

REUTERS - Private-sector lender South Indian Bank is selling shares to institutional investors to raise about 4.4 billion rupees, two sources with direct knowledge of the transaction said on Monday.

The floor price for the bank's share sale has been set at 22.13 rupees a share, said the sources, who declined to be named as they were not authorised to speak to the media.

South Indian Bank shares rose 3.3 percent on Monday to 21.70 rupees.

South Indian Bank said in July it planned to raise 5 billion rupees through a share sale. The bank shares are up nearly 8 percent this year, lagging a 12.5 percent rise in the main market index.

The offering opened late on Monday and the transaction will be completed early Tuesday, said the sources, adding the sale is part of South Indian Bank's plan to boost its balance sheet, one of the sources said.

Officials at the bank could not be reached for a comment.

JPMorgan along with SBI Capital, a unit of the country's top lender State Bank of India, Enam Securities and JM Financial are advising South Indian Bank on the share sale, the sources said.