Indian Bank a leading public sector banking institution with the largest network of branches in Tamil Nadu, has filed its Draft Red Herring Prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) on December 1, 2006 with a proposal to enter the capital market with its initial public offering of equity shares.

Indian Bank proposes to offer 85,950,000 equity shares of Rs.10 each for cash at a premium to be decided through 100% book-building process. The offer will constitute 20% of the post issue fully diluted paid up equity capital.

The Bank has proposed to reserve 8,595,000 equity shares for allotment to employees and the balance 77,355,000 equity shares would constitute the net offer to public. Of the net offer to public, 60% shall be allotted to qualified institutional buyers, of which 5% would be allotted to mutual funds. Further, 10% shall be available for allocation to   non-institutional bidders and the balance 30% shall be available for allocation to the retail investors on a proportionate basis.

Indian Bank, which is celebrating its centenary year, as on September 30, 2006 had 1,408 branches in India spread over 26 states and 3 union territories besides a branch in Singapore and another one in Colombo, Sri Lanka. The Bank as on September 30, 2006 had over 18.1 million customers.

The Book Running Lead Managers to the Issue are SBI Capital Markets Limited, Enam Financial Consultants Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited. 

Sourced From: Adfactors Public Relations Pvt Ltd