The Hindu Business Line : UTI Bank’s GDR priced at $15.43

The bank said it has also priced both its proposed qualified institutional placement and the preferential equity allotment to promoters at Rs 620 per share.

Through these offerings, the bank can raise over Rs 4,200 crore, or the equivalent of $1,050 million.

The GDR issue will raise around $218.07 million (over Rs 870 crore); while the proposed QIP and the preferential issue of 2.56 crore shares, aggregate Rs 1,782 crore and Rs 1,588 crore respectively.

The GDR price of $15.43 each is at a 1.7 per cent discount to the closing price of the bank’s GDRs on July 20. The domestic offerings at Rs 620 per share would be at a discount of 4.7 per cent to the closing price of UTI Bank on BSE on Friday.

The GDRs, each representing one underlying share, will be listed on the London Stock Exchange.

PREFERENTIAL OFFER

It is not clear whether all the promoters of UTI Bank can participate in the preferential offer of equity shares.

According to SEBI guidelines, “…where shares/warrants/convertible instruments are offered on a preferential basis, the shareholders who have sold their shares during the six months period prior to the relevant date shall not be eligible for allotment of shares on a preferential basis.”

Going by the recent shareholding pattern of the promoter entities of the bank, and going strictly by the SEBI guideline, some of the promoters may be ineligible for the preferential offer.

The National Insurance Company had 28.7 lakh shares in UTI Bank as on December 31, 2007, but only 27.1 lakh shares (0.96 per cent stake) as on March 31, 2007.

For Oriental Insurance the corresponding figures are 12.2 lakh shares and 11.8 lakh shares (0.42 per cent stake).

However, it is not known whether they sold their shares before or after January 27 which would mark the six-month period before the settlement date.

In the case of GIC, its holding in UTI Bank dropped from 67 lakh shares as on March 31, 2007, to 66.6 lakh shares (2.36 per cent stake) as on June 30, 2007.

The promoter holding in UTI Bank is over 42 per cent. The administrator of the specified undertaking of Unit Trust of India UTI 1 (27.33 per cent) and Life Insurance Corporation (10.39) are the largest promoters of UTI Bank.

More Stories on : Private Banks | Stocks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Appreciating the causes and effects of rupee appreciation

Flux in forex accounting norms

Intel goes rural with lend-n-lease tie-ups

Bonds continue to rally

Tamilnad Mercantile Bank opens branch in Bhilwara

UTI Bank’s GDR priced at $15.43

Recoveries buoy Indian Bank’s Q1 net profit

BoB unveils SME loan factory