INDIAN BANK LOOKING TO RAISE UP TO RS.7000 CRORE
The public sector lender INDIAN BANK is planning to push up to Rs.7000Crore from the capital markets in one or more portions, and it is expecting to appoint merchant bankers for the same. The bank intends to get this money from the capital market via follow-on public offers (FPOs) or qualified institutional placement (QIP) with portions of the face value of Rs.10 each.
The bank will appoint five merchant bankers, collectively known as Book Running Lead Managers (BRLMs), with the necessary experience. These merchants will advise on the structuring of FPO in obedience with the rules of SEBI, laid down by the stock exchanges and on timing and modality of the QPI. BRLMs will take all the decisions together with legal Council and other advisors.
The bank said, ”The qualified interested bidders will be required to make a presentation(maximum 20 minutes) of their credentials before the selection committee. The selection committee would evaluate the bidders on the criteria mentioned in the proposal format based on their presentation and proposals received. Only bidders scoring at least 70% in the technical bids will be shortlisted.”
As reported by Mint public sector banks are still reeling under the burden of bad assets and mounting losses and would need an infusion of around Rs.40000Crore, citing estimates by credit rating companies. In the last few years, the government is unlikely to pump in the entire requirement and would instead prefer banks raise some of it from the market to be on an even keel; to get them into lending mode would require another dose of capital.