South Indian Bank plans Rs 1000 cr QIP

ET NOW: Kerela based South Indian Bank plans to raise Rs 1000cr via QIP, which will entail issue of 40 crore new shares.

About eight merchant bankers have approached the bank and close to four of them have been finalised while the presentations are still on. Bankers including JM Financials, SBI Caps, Kotak Investment Banking, Emkay, ICICI Sec, Enam are in negotiations with South Indian Bank.

Sources say that the fund raising may happen in the range of Rs 30-33/share vs CMP of Rs 25/share which will lead to a equity dilution of about 35%. Analysts say that this fund raising can take care of the bank’s credit need for next three years.

The board of South Indian Bank will seek shareholder’s approval for the fund raising exercise on July 15th and the QIP is expected to be concluded by September end. The bank's management confirmed the QIP issue on Wednesday.

At 11:40 am, shares of South Indian Bank were trading 0.81 per cent up at Rs 24.90 on the Bombay Stock Exchange.