The Hindu : Business : Syndicate Bank's second offering opens on July 7

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Wednesday, Jun 29, 2005

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Syndicate Bank's second offering opens on July 7

MUMBAI: Syndicate Bank will hit the capital market on July 7 for the second time with its follow-on issue of five crore equity shares to augment its capital requirements.

"The issue is being made to augment the capital requirements in keeping with Basel II norms as well as to meet our future growth objectives,'' Syndicate Bank Chairman and Managing Director, N. Kantha Kumar, told reporters here on Tuesday. The issue would comprise five crore equity shares of Rs. 10 each for cash at a premium to be decided through the book-building process. The issue will remain open till July 13.

The bank had earlier come out with a public issue of 12.5 crore equity shares in 1999. The value of the bank's scrips on the bourses is Rs. 55.70.

Post-issue the bank's capital would rise from Rs. 471.9 crore to Rs. 521.9 crore while government holding would come down from 73.5 per cent to 66.5 per cent, he said.

With the Reserve Bank of India keen to see a consolidation of the Regional Rural Banks (RRBs), Syndicate Bank said it was planning to merge one of its RRBs in Karnataka, Mr. Kumar said.

The bank at present has a 35 per cent stake in ten RRBs spread across Andhra Pradesh, Haryana, Kerala and Uttar Pradesh with 1,163 branches in five states. — PTI

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