Vijaya Bank To Reserve 10% Of Ipo For Staff

The Bangalore-based Vijaya Bank will reserve 10 per cent of its Rs 100-crore Initial Public Offering (IPO), which will hit the market on November 27, for its staff. The objective of the issue is to enhance its capital adequacy ratio (CAR) and to bring down the government's stake from 100 per cent to 72.16 per cent.

"We expect long-term investors to subscribe to the issue," said S Gopalkrishnan, chairman and managing director, Vijaya Bank. The bank will issue 10 crore equity shares of Rs 10 each at par. Earlier, Syndicate Bank and Indian Overseas Bank had floated their IPOs at par.

Post issue, the bank's capital base will be Rs 359.23 crore, up from the current Rs 259.23 crore. Its CAR on March 31 was 10.61 per cent. The book value per share (1999-00) stood at Rs 13.74 per share and the earning per share (EPS) in the same period was Rs 2.04.

The issue is lead managed by SBI Capital Markets, DSP Merrill Lynch, Kotak Mahindra Capital Company and JM Morgan Stanley.