Kolkata: UCO Bank is likely to raise Rs
900-950 crore from follow-on-public offer after a strong rally
in the stock market.
"As per the current market conditions, getting a premium
of Rs 60 will not be a problem. A premium of around Rs 50 a
share was expected earlier," UCO Bank chairman and managing
director S K Goel told.
He said the final pricing would be made later after
consulting the merchant bankers. The issue has been expected
to hit the capital market in January, sources said.
With revival in the stock market, UCO bank authorities
had revised estimates of premium for the issue from Rs 50 to
over Rs 60 a share.
The bank is likely to use the book building route for the
FPO rather than fixed pricing method when the bank first hit
the stock market in 2003 at a premium of Rs 2 for each
share of Rs 10.
The bank has been expecting better valuation with entry
into insurance business which is likely to be in place soon.
Bureau Report
First Published: Monday, October 19, 2009, 11:49