Financial Daily from THE HINDU group of publications
Tuesday, Dec 24, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 24, 2002 |
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Markets
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Stock Markets Canara Bank debuts at 40 pc premium Our Bureau
Mr R.V. Shastri, Chairman & Managing Director, Canara Bank, striking the bell at the Bombay Stock Exchange Convention Hall for the listing of its equity shares in Mumbai on Monday.
MUMBAI, Dec. 23 SHARES of Canara Bank were quoted at 49.15, a premium of 40 per cent over the issue price of Rs 35, today, the first day of trading. According to analysts, the recent rally in bank stocks had a positive impact on the shares of Bangalore-based bank which got listed on the BSE and NSE today. The share ended at Rs 49.15 at the BSE and at Rs 48.60 at the NSE, after touching a low of Rs 40 and Rs 41.85 respectively. The shares opened at Rs 43 at the BSE and a total of 84.56 lakh shares were traded. At the NSE, the shares got listed at Rs 42, with a traded volume of 1.71 crore with 37.24 lakh for delivery. Canara Bank came out with its initial public offer (IPO) of 11-crore equity shares for an amount of Rs 385 crore. The net offer to the Indian public was 9,90,00,000 shares for an amount of Rs 346.50 crore. The issue was oversubscribed 1.8 times and the bank mobilised an amount of Rs 692 crore. "The bank would use the IPO proceeds to augment its long term resources and maintain a comfortable capital adequacy ratio in line with its estimated growth in assets," Chairman and Managing Director, Mr R.V. Shastri, told reporters at the listing function here. Post-IPO, the Government's stake in the bank is close to 73 per cent, while retail holding stood at 10 per cent, the Bank's Executive Director, Mr N. Kantha Kumar said. Prior to IPO, the bank returned 48 per cent of its equity capital at part value aggregating Rs 277.87 crore to the Finance Ministry. Asked about the recovery of outstandings under the securities ordinance, Mr Shastri said the bank has sent about 500 notices for outstandings of Rs 300 crore. Many corporate and firms have come forward with settlement proposals and ``we do not like to be harsh where people are ready to make payments,'' he added. The recovery of bad assets, interest income and cost cutting drive helped to improve profits during the first of this fiscal, he said. The capital adequacy ratio would be 12 per cent as against 11.7 per cent prior to IPO, Mr Kumar said. The bank's net profit stood at Rs 741 crore for the financial year March 2002. Total business of the bank was at Rs 97,157 crore and operating profit stood at Rs 1,656 crore.
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