The Hindu Business Line : Syndicate Bank files draft for second public issue

SYNDICATE Bank has filed a draft red herring prospectus on Tuesday with the Securities & Exchanges Board of India to enter the capital market with its second public issue of equity shares.

The bank proposes to issue 50 million equity shares of Rs 10 each for cash at a premium to be decided through the book-building process. The issue is to be made through a 100-per cent book-building process.

Of the total offer, the bank has reserved 5 million equity shares to its employees and another 5 million equity shares to existing shareholders.

Of the balance net offer of 40 million shares, 20 million are reserved for allotment to qualified institutional buyers on a discretionary basis and 6 million reserved for allotment to non-institutional buyers. The remaining 14 million would be allotted to retail investors on a proportionate basis.

"The issue is being made to augment the capital requirements in keeping with Basel II norms as also meet our future growth objectives," said Mr N. Kantha Kumar, Chairman & Managing Director of Syndicate Bank.

Syndicate Bank caters to over 16 million customers across the country through its network of 1,785 branches.

As on December 31, 2004, its total business was over Rs 69,000 crore.

The lead managers for the issue are SBI Capital Markets Ltd, Enam Financial Consultants Pvt Ltd, JM Morgan Stanley Pvt Ltd and SSKI.

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