INDIA'S IDBI BANK PLANS FPO IN JAN; TO RAISE US$500 MN FROM O/S BONDS

Sun. November 08, 2009; Posted: 09:52 PM

NEW DELHI, Nov 09, 2009 (AsiaPulse via COMTEX) -- IDBNF | Quote | Chart | News | PowerRating -- Indian state-owned IDBI Bank (BSE:500116) on Friday said it would tap the capital market with a follow-on public offer in January next year to meet its future capital requirements.

"We plan to come out with an FPO (Follow-on public offer) in January," IDBI Bank chairman and managing director Yogesh Agarwal said.

The bank requires about Rs 150-160 billion (US$3.2-3.4 billion) in the next three to four years, Agarwal said.

Asked about the amount it plans to raise, Agarwal said: "(The) Whole size of the issue would be double of what the government of India is willing to subscribe."

"If I come out with issue of Rs 2, government of India will have to subscribe one and the public has to subscribe remaining one," he said.

The lender also plans to raise US$500 million through issue of bonds in the international market to fund some of the Indian corporates' overseas expansion programmes.

The promoter (government) holding in IDBI Bank stood at 52.67 per cent, while the public holding stood at 47.33 per cent.

At the end of today's trade the shares of the bank were quoted at Rs 118.95, up 1.56 per cent on the BSE.

IDBI Bank is the latest to join the FPO bandwagon, as another state run entity Rural Electrification Corporation is likely to hit markets by February next year and will approach market regulator SEBI by this December.

(PTI) rw

For full details for IDBNF click here.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.