Canara Bank plans to go for Rs 110-crore IPO
By Our Banking Bureau | 28 Jun 2002
1
Bangalore:
Canara Bank plans
to go for a Rs 110-crore initial public offer in the third quarter
of this financial year.
Canara Bank chairman R V Shastri, however, says the pricing of the
equity has not yet been finalised. "But the issue will bring
down the governments stake in the bank by 27 per cent. The
issue will also allow the bank to return the capital equivalent of
Rs 277 crore back to the government."
"The surrender of the equity will have to be approved by the union cabinet, since it will be a further dilution in stake. We are awaiting the governments response," he says.
The banks current equity base is Rs 577.86 crore, entirely held by the government. The return of the equity will allow the banks earning per share to remain high.
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