Indian Bank FPO to hit market by August

Public sector Indian Bank said it will raise over Rs 61 crore by way of further share sale offer, which is likely to hit the market by August.

"Indian Bank has received the approval of government of India to raise an additional equity capital of Rs 61.4 crore through FPO. We plan to hit the market in July or August 2011," Indian Bank Chairman & Managing Director TM Bhasin said.

The bank will sell 6.14 crore shares with a face value of Rs 10 through the follow-on public offer (FPO).

The present size of equity capital of Indian Bank is Rs 429.77 crore, of which 80% is held by the government.

"With the raising of Rs 61.4 crore additional equity, the government of India stake will go down to 70%," Bhasin said.

The bank is in the process of filing the draft prospectus for the FPO and would soon appoint merchant bankers for the issue.

Source: Business Standard