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Indian Bank to tap market

Corporate Reporter

85.95 m share issue through book-building

CHENNAI: Indian Bank has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 1, with a proposal to enter the capital market with its initial public offering of equity shares.

The bank proposes to offer 85.95 million equity shares of Rs. 10 each for cash at a premium to be decided through 100 per cent book-building process.

The offer will constitute 20 per cent of the post issue fully diluted paid-up equity capital.

The bank has proposed to reserve 8.59 million equity shares for allotment to employees and the balance equity shares would constitute the net offer to the public. Of this, 60 per cent will be allotted to qualified institutional buyers (QIBs), of which five per cent will be allotted to mutual funds.

After reserving 10 per cent to non-institutional bidders the balance shall be available for allocation to the retail investors on a proportionate basis.

The book running lead managers to the issue are SBI Capital Markets, Enam Financial Consultants, ICICI Securities and Kotak Mahindra Capital Company. More details are available on the website of SEBI at www.sebi.gov.in and the respective websites of the book running lead managers at www.sbicaps.com, www.enam.com, www.icicisecurities.com and www.kotak.com.

The bank, which is celebrating its centenary year, has 1,408 branches in India spread over 26 states and three union territories besides a branch in Singapore and another one in Colombo.

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