UTI Bank to make preferential allotment
By Our Banking Bureau | 28 Mar 2002
1
Mumbai: UTI Bank is to make a preferential allotment of about 1.35-crore equity shares of Rs 10 face-value each at a premium of Rs 29.04 per share to Life Insurance Corporation (LIC), General Insurance Company, National Insurance Company and New India Assurance Company. The issue is aimed at bringing down the promoters stake to below the regulatory cap of 40 per cent, says a senior UTI Bank official.
The official says the preferential issue will bring down Unit Trust of Indias stake in the new-generation private sector bank to 39.64 per cent from the present 44.88 per cent. The total capital of the bank will go up to Rs 201.81 crore from the current Rs 178.25 crore. The preferential issue will not, however, alter the capital adequacy ratio because of an expansion in the asset base, he says. "It is at present in the region of 10-10.5 per cent.
The proposal, which has been cleared by the board of directors of UTI Bank, envisages allotment of up to 36,55,000 fully paid-up equity shares of Rs 10 face-value each to LIC at a price of Rs 39.04 per share (inclusive of a premium of Rs 29.04 per share), a bank release said.
