The Hindu : Canara Bank listed at 40 p.c. premium to offer price

Online edition of India's National Newspaper
Tuesday, Dec 24, 2002

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Business

Canara Bank listed at 40 p.c. premium to offer price

MUMBAI DEC. 23. The shares of Canara Bank, which were listed on the Bombay Stock Exchange today, closed at 40.42 per cent premium to the offer price of Rs. 35 per share.

The scrips opened at Rs. 43, rose to a high of Rs. 49.80 before closing at Rs. 49.15. The shares saw heavy trading volumes of 84.94 lakh shares valued at Rs. 38.71 crores on the BSE.

The bank would use the initial public offering proceeds to augment its long term resources and maintain a comfortable capital adequacy ratio in line with its estimated growth in assets, the Chairman and Managing Director, R. V. Shastri, told reporters at the listing function here.

The Bangalore-based bank had hit the market with IPO of 11 crore shares of Rs. 10 each at a premium of Rs. 25 per share, aggregating Rs. 385 crores on November 18. The offer closed on November 27.

Prior to IPO, the bank returned 48 per cent of its equity capital at par value aggregating Rs. 277.87 crores to the Finance Ministry.

Asked about the recovery of outstandings under the Securities Ordinance, Mr. Shastri said the bank had sent about 500 notices for outstandings of Rs. 300 crores.

Many corporate and firms have come forward with settlement proposals and "we do not like to be harsh where people are ready to make payments,'' he added.

PTI

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