Rs 230 crore BoM initial offer to open tomorrow

Bank of Maharashtra's Rs 230 crore initial public offer is scheduled to open on February 25. The proceeds from the IPO would be used for both organic and inorganic expansion.

"We will expand in areas where there is business potential," the bank's chairman and managing director S C Basu said at a press conference here.

Bank of Maharashtra has also kept options open for acquiring other banks in the near future.

The bank proposes to increase its customer base to 10 million from 6.7 million over the next three years.

The bank is offering 10 crore equity shares, with a face value of Rs 10, at a premium of Rs 13 each. The issue is scheduled to close on March 4.

The entire pre-issue capital of the bank, amounting to Rs 330.52 crore, is subscribed by the government. Following the IPO, the Centre's holding will reduce to 76.77 per cent.

The government has given its consent to lock in 20 per cent of the post-issue capital for three years from the date of allotment and the balance pre-issue share capital for one year.

A minimum 50 per cent of the allotment would be made to retail investors who apply for shares with a value of Rs 50,000 or less.

The percentage of allotment to retail investors can, however, be increased later.