New Delhi, Aug 29: Indian Overseas Bank (IOB) plans to offer 10% to NRIs in addition to 10% to employees in its Rs 240-crore public issue opening on September 5. The Chennai-based bank is also in talks with financial institutions including LIC for picking up a stake in the offering.
LIC currently has about 0.16% stake in IOB, while other banks and FIs like Andhra Bank, Punjab & Sind Bank (PSB) and Central Bank of India have another 1.8%, SC Gupta, chairman of IOB said here in Delhi. Earlier, IOB board had cleared a premium of Rs 14 taking the price per share to Rs 24.
Currently, IOB shares are quoting at a price of Rs 29 in the stock exchanges. The government holding in the bank that is currently at 75% will come down to 61.2%.
The pricing, Gupta said, has been done keeping in mind a discount of 10-15% as prescribed by Sebi.
IOB currently has a capital adequacy ratio (CAR) of 11.3%. Post issue, the CAR is expected to go up to 12 %.
Bureau Report