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UCO Bank plans Rs450 cr FPO; to approach SEBI Dec end

UCO Bank plans Rs450 cr FPO; to approach SEBI Dec end
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First Published: Sun, Nov 25 2007. 03 47 PM IST
Updated: Sun, Nov 25 2007. 03 47 PM IST
PTI
New Delhi: Public sector lender UCO Bank plans to raise over Rs450 crore through follow on public offer and will approach market regulator SEBI by the end of December in this regard.
“We plan to file draft prospectus for the FPO by the end of December or early January as we hope to get the government nod on capital recast plan soon,” the Kolkata-based bank’s SK Goel, chairman and managing director told PTI.
The public offer would come sometime in February or March, he said, adding, “at an conservative estimate we will be able to raise about Rs450 crore from the market.”
The bank has sent a proposal to the government to restructure its share capital by converting a portion of equity share into preference shares to get further headroom for raising resources.
UCO Bank has got a paid-up capital of Rs799.3 crore as on 30September, which is higher than Punjab National Bank or State Bank of India.
As part of its capital restructuring proposal, the bank has asked for conversion of Rs300 crore of its Rs800 crore equity capital into preference capital.
If the government accepts the bank’s proposal, the earning per share (EPS) is expected to go up significantly to almost 6.5% from around 4% at the end of 30September.
Following FPO, the government’s holding would come down to 55% from the 75% in the bank.
UCO Bank hit the capital market with around Rs240 crore IPO in 2003. The bank, 100% owned by the government in pre-IPO period, sold a share of face value of Rs10 at a premium of Rs2.
On Friday, its share closed up 4.83% at Rs57.50 on the Bombay Stock Exchange.
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First Published: Sun, Nov 25 2007. 03 47 PM IST