UTI Bank talks to LIC Housing, NHB, Powergrid to raise funds
04 July 2003
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.