Indian Bank looking to raise up to ₹7,000 crore1 min read . Updated: 31 May 2019, 08:43 AM IST
- The bank will select and appoint up to five merchant bankers
- Bidders scoring at least 70% in the technical bids will be shortlisted
Mumbai: Public sector lender Indian Bank is looking to raise up to ₹7,000 crore from the capital markets in one or more tranches and plans to appoint merchant bankers for the issue.
“Indian Bank intends to tap capital markets via a follow-on public offer (FPO) or qualified institutional placement (QIP) route for raising of capital up to ₹7,000 crore (including premium) in one or more tranches of the face value of ₹10 each," the bank said in a tender document.
The bank will select and appoint up to five merchant bankers with requisite experience who together will be designated as book running lead managers (BRLMs).
Indian Bank wants these merchant bankers to advice on structuring the FPO in conformity with the Sebi regulations and the rules laid down by stock exchanges and on the timing and the modalities of the QIP.
“Together with legal counsel and other advisors, as the BRLMs may consider appropriate, undertake due diligence activities, co-ordination and preparation of documentation required for the offering (including any international wrap)," it said.
According to the document, qualified interested bidders, meeting the eligibility criteria would be required to make a presentation (maximum of 20 minutes) of their credentials before the selection committee. “The selection committee would evaluate the bidders on the criteria mentioned in the proposal format based on their presentation and proposals received. Only bidders scoring at least 70% in the technical bids will be shortlisted," the bank said.
Mint reported on 29 May that public sector banks, still reeling under the burden of bad assets and mounting losses, would require capital infusion of up to ₹40,000 crore, citing estimates by credit rating companies. As in the last few years, the government is unlikely to pump in the entire requirement and would rather prefer banks raise some of it from the market to be on an even keel; to get them into lending mode would require another dose of capital.