UCO's follow-on offer in December

NEW DELHI: UCO Bank plans to raise Rs 500-600 crore through a follow-on public offer (FPO) in December. After the public offer, the government���s share in the bank would come down to 53.8% from the present 75%. The bank will offer 10 crore shares to the public at a face value of Rs 10 each. The premium could be in range of Rs 50 to Rs 60 per share.
���We want to go in for the FPO in the third quarter of this fiscal subject to market conditions,��� bank���s chairman and managing director SK Goel told reporters, on the sidelines of a function to launch pre-funded cheques by the bank. The bank has got approvals for the FPO.

The government is also considering capital restructuring of the bank, which could include approval to raise Rs 325 crore through perpetual non-convertible preference shares. Mr Goel said the bank is awaiting Cabinet clearance for its capital restructuring. The bank would be converting Rs 300 crore of capital into preference shares. On debt recovery, Mr Goel said the bank expects to recover Rs 800 crore from bad assets during 2008-09.