UCO Bank gets capital restructuring nod
Public sector UCO Bank, which has plans to float a follow-on-offer, has obtained the government nod for capital restructuring which would help the lender reduce its equity base.
By PTI |
KOLKATA: Public sector UCO Bank, which has plans to float a follow-on-offer, has obtained the government nod for capital restructuring which would help the lender reduce its equity base.
Bank CMD S K Goel told reporters here today that as the bank has a large capital base of around Rs 800 crore, it was not possible for float a follow-on-offer without capital restructuring.
He said shares worth Rs 325 crore would be issued on preferential basis, while another Rs 300 crore of government equity would be converted into preference shares.
He said the bank would raise Rs 500 crore to Rs 600 crore from the public offer in the third quarter of the current financial year.
Post issue of preference shares and follow-on-offer, government holding in the bank would go down to 54 per cent.
Bank CMD S K Goel told reporters here today that as the bank has a large capital base of around Rs 800 crore, it was not possible for float a follow-on-offer without capital restructuring.
He said shares worth Rs 325 crore would be issued on preferential basis, while another Rs 300 crore of government equity would be converted into preference shares.
He said the bank would raise Rs 500 crore to Rs 600 crore from the public offer in the third quarter of the current financial year.
Post issue of preference shares and follow-on-offer, government holding in the bank would go down to 54 per cent.
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