Market slowdown hits Indian Bank FPO

Chennai: Public sector lender Indian Bank said it is looking at better market conditions for launch of its follow-on public offer (FPO).

The city-headquartered bank had proposed to raise funds for its expansion plans from the capital market,Indian Bank Chairman and Managing Director T M Bhasin said.

"We will start preparing for the red-herring prospectus. it should be over in one month ... after obtaining the SEBI ticket we will hit the market when it is conducive," he said after addressing the shareholders at their Fifth Annual General Meeting here.

The bank will sell about 6.1 crore shares with a face value of Rs 10 through the FPO.

However, he cautioned that the Bank was not short of funds and does not require capital as the capital adequacy ratio was 13.56 per cent.

On their proposal to raise USD one billion (about Rs 4,400 crore) by issuing through overseas bonds, Bhasin said the offer document was ready and would hit the Singapore Stock Exchange by the second week of July.

"Right now the offer document is ready and we will hit the market by second week of July... the proposal is to raise USD one billion (Rs 4,500 crore).. we will go in two tranches (500 million).. this is only for overseas lending..", he said.

Bhasin said their new Corporate office coming up at Royapettah in city at a cost of rs 67.5 crore would be inaugurated in July.

Earlier, addressing the shareholders at the AGM,he said the Bank envisaged to do a total business of Rs 2.25 lakh crore this fiscal.

Source: Financial Express