Indian Bank plans Rs1500-crore follow-on public offer in September
25 Apr 2011
State owned Indian Bank today said it had plans for a follow-on public offer (FPO) for raising Rs1,500 crore by September this year.
Indian Bank chairman and managing director, TM Bhasin said the bank had got in-principle approval from the government.
He added that the bank was planning to come out with the public offer within the next six months.
The funds raised would boost the bank's Tier 1 capital, which was 11.02 per cent at the end of March 2011, he added.
He said the capital raised would help fund business growth for the next few years.
He said pursuant to the board's resolution, the bank would issue 10 per cent fresh shares in addition to its current equity base of around Rs430 crore.