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Market conditions will decide the timing of Indian Bank's follow-on public issue, said the bank's Chairman and Managing Director, Mr T. M Bhasin. Indian Bank intends to raise 6.4 crore shares of Rs 10 each through its follow-on public offer (FPO).
The bank expected to hit the capital market with its FPO in August or September. It got approval from the Government last month. The bank is preparing its draft red herring prospectus based on the financial results ending March 31.
On the sidelines of Indian Bank's annual general meeting, Mr T.M Bhasin, Chairman and Managing Director, said, “Currently, the bank is not capital hungry; the bank does not require capital.” The bank has a comfortable capital adequacy ratio of 13.56 per cent and can raise about Rs 6,250 crore as tier II bonds, he said.
The bank expects to file the Red Herring Prospectus in a month's time and get the SEBI ticket. The bank has the flexibility to go for a FPO within one year from the date of SEBI ticket, he said.
“FPO depends upon the market conditions and it is not necessary that we may take the FPO route only,” he said.
Indian Bank reported a seven per cent increase in net profit to Rs 438.86 crore for the quarter ending March 31. Earning per share was Rs 9.94, compared with Rs 11.6 the previous quarter.
The board of directors have recommended a dividend of Rs 7.5 per cent per share. The bank's share closed at Rs 215.10 on the BSE, lower by 0.67 per cent.
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