UTI Bank postpones plan to raise $600mn
26 Jun 2007
Mumbai:
UTI Bank has postponed its $600 million global depository
receipts (GDR) issue as well as the simultaneous preferential
offer to its promoters in order to provide promoter
shareholders - Specified Undertaking of Unit Trust of
India (SUUTI), Life Insurance Corporation and General
Insurance Corporation - more time to take a call on
subscribing to the preferential offer the bank said.
SUUTI
is the largest shareholder in UTI Bank with 27.43 per
cent stake. LIC owns 10.38 per cent of the bank''s equity
while holds GIC 2.38 per cent.
The shareholders will again meet on July 13, 2007 to consider the capital raising plans. However, a resolution was passed for increasing the bank''s authorised capital to Rs 500 crore from Rs 300 crore.
Banking
sources said LIC, which bid in the recently concluded
ICICI Bank''s follow-on equity offer for shares worth
about Rs 4,000 crore, has asked for more time to arrange
for funds as it was currently experiencing a "tight
liquidity" situation. SUUTI, which has already
obtained the government''s permission, also needs to
arrange for funds to subscribe to its portion of the
preferential offer.