 Mumbai:
UTI
Bank has initiated talks with Powergrid Corporation of
India, LIC Housing Finance and National Housing Bank (NHB)
to bag a merchant banking contract for the proposed fund
mobilisation by these institutions of around Rs 2,000
crore.
Powergrid
has outlined Rs 1,500 crore for the fund mobilisation
programme while LIC Housing Finance wants to raise Rs
250 crore from the market. NHB is also planning to approach
the capital market for around Rs 250 crore.
Says
senior UTI Bank official: "UTI Bank''s merchant
banking division has almost finalised a deal with LIC
Housing. Talks are on with Powergrid and NHB."
As
per the agreement with LIC Housing, out of the Rs 250-crore
private placement of the company, UTI Bank will manage
Rs 150 crore while the rest will be managed by HSBC
and Darashaw Investments, the UTI officials say.
They
added that Powergrid, the state-owned transmission company,
has outlined an expansion plan involving Rs 70,000-crore
capital investment in the next 10 years to evacuate
power from an additional generation capacity of 1,00,000
mw that is expected to be added during the period.
During
the current financial year, Powergrid has lined up investments
of over Rs 3,000 crore, up from Rs 2,561 crore in the
last fiscal. Also, a Rs 400-crore telecom project that
was cleared only
in March 2003 will be taken up in 2003-04. To part-fund
its investment plans for the year, the company is planning
to raise about Rs 1,500 crore from the domestic capital
market, the officials say.
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