Syndicate Bank seeks up to $186.4 million in share sale

Indian state-run Syndicate Bank Ltd has launched a share sale to institutional investors, seeking to raise up to Rs 1,200 crore ($186.4 million) to help boost its capital ratio, sources with direct knowledge said on Tuesday.

The deal has a base size of up to Rs 700 crore with an upsize option of up to Rs 500 crore, the sources said, adding the bank has set an indicative sale price of Rs 84.15 a share.

Ahead of the launch of the share sale, the stock closed at Rs 84.45 on the National Stock Exchange on Tuesday.

Equirus Capital, BOB Capital Markets, BNP Paribas, Centrum Capital, Elara Capital and IDBI Capital are the banks managing the share sale, according to Syndicate Bank's regulatory filing with the stock exchanges.

India's state-run banks are raising funds from share sales as part of the government's recapitalisation plan for the lenders that will also see New Delhi injecting Rs 1.35 lakh crore in them through recapitalisation bonds.