Vijaya Plans Rs 100 Crore Ipo

The Bangalore-based Vijaya Bank is planning a Rs 100 crore equity issue at a premium in August. The bank is looking at raising money through rights cum public issue. The bank is yet to finalise the details of the issue.

The bank will be raising funds to an asset management company and it also plans to move into an insurance joint venture. In fact, for this purpose the bank has decided not to return share capital of Rs 100 crore to the government, M S Kapur, chairman and managing director of the bank, said.

Vijaya Bank in association with the Punjab National Bank (PNB) is planing to pick up stake in IDBI-Principal Asset Management Co, following the exit of Industrial Development Bank of India (IDBI). The two banks have sought the Reserve Bank of India (RBI) approval.

 

It is likely that Vijaya Bank will hold a lesser stake in the AMC and Principal is likely to retain its 50 per cent stake in the mutual fund.

Moreover, Vijaya Bank, Punjab National Bank (PNB), the Principal Financial Group of the US and a leading tyre company are soon to set up a life insurance venture. The four have signed a memorandum of understanding (MoU) and have applied to the Insurance Regulatory and Development Authority (Irda) for a licence.

Vijaya Bank is expected to pick up a 12 per cent stake in the insurance venture. The banks are understood to have received the necessary clearance from the RBI. PNB and Principal will have 26 per cent stake each in the venture. The balance 36 per cent will be held by the corporate partner.