UTI Bank, Sahara group, ICICI Bank fully subscribe IDBI issue

Mumbai:
29 July 2003

Source close to the deal say out of the total Rs 500-crore issue, UTI Bank has subscribed Rs 200 crore while the Sahara group subscribed to another Rs 200 crore. The remaining Rs 100 crore has been subscribed by ICICI Bank. UTI Bank was the sole advisor to the deal.

IDBI has plans to mobilise Rs 5,000 crore through the private placement route over five years. IDBI wants to utilise these funds for its normal capital expenditure. The financial institution expects to raise up to Rs 2,500 crore through the private placement of omni-bonds and another Rs 2,500 crore through the flexi-bonds issues.

Senior UTI officials say the bank has also subscribed to the Rs 100-crore private placement of automaker Mahindra and Mahindra and Rs 120-crore private placement of PowerGrid Corporation of India during July. M&M would also use the funds for its capital expenditure programme for the current fiscal.

PowerGrid wants to borrow about Rs 1,500-1,600 crore from the domestic market in the current financial year to part-finance its planned investment of Rs 3,250 crore, after which it expects a turnover of Rs 3,000 crore and a net profit of Rs 900 crore. In 2001-02, PowerGrid raised Rs 550 crore of long-term loans and Rs 1,695 crore of bonds in the domestic market.

According to the UTI Bank officials, the bank is also in talks with Gas Authority of India and Nuclear Power Corporation for their proposed Rs 500-crore private placements, both scheduled for the current fiscal.