J&K Bank 2nd offer likely in Q1FY06

Jammu & Kashmir Bank is planning to tap the market sometime in June-July 2005 while exploring options of inducting a strategic partner.

"We are thinking of a second public offer in June-July next year," chairman M Y Khan said, but declined to reveal the amount, which is  expected to be "much more" than Rs 100 crore.

The bank may seek approval of the state government to dilute its equity below 51% to raise more capital from the market.

The Jammu & Kashmir government has a majority 53.15% stake in the bank. FIIs' holding has come down to less than 25%. The bank recently hiked its FII holding limit to 33%, and there has been renewed interest in the bank from foreign investors.

"The FII stake in the bank has already crossed 25%, and their interest has pushed up the share price also," Khan said.