Dena Bank Gets Nod For Issue, Premium Indicated At Rs 20

Confirming this, Dena Bank CMD Ramesh Misra told Business Standard, We plan to hit the market immediately after the Reserve Bank of India approval.

Although the ministry has cleared the proposal, the RBI consent is mandatory for the issue. The bank moved the Securities and Exchange Board of India yesterday. The offer document submitted to Sebi indicated a premium of Rs 20. The total size of the public issue will be Rs 180 crore. Post-issue, the equity capital of Dena Bank will go up from Rs 146 crore to Rs 206 crore.

SBI Caps, J M Financials, Anangram Finance and Lazard Capital will lead-manage the issue. The scrip will be listed at Bombay Stock Exchange, the Ahmedabad Stock Exchange and the National Stock Exchange. No portion of the public issue will be reserved for mutual funds and foreign institutional investors. We will only reserve part of the issue for employees of the bank and NRIs, Misra said.

 

Dena Bank is one of the five banks that were allowed to write off their accumulated losses over Rs 3,000 crore. Dena trimmed down its equity base to Rs 146 crore by writing off accumulated losses to the tune of Rs 136.29 crore. The Bank of India which was allowed to write off its accumulated losses totalling Rs 1,506.21 crore is also planning to hit the market this fiscal with an over Rs 1000 crore public issue.

Bank of Baroda, Canara and Corporation Bank are the three nationalised banks which have been allowed to return a part of the government capital. These three banks along with Bank of India and Dena Bank constitute the second lot of nationalised banks to tap the capital market this fiscal.