The Hindu : UTI Bank's offer to institutions

Online edition of India's National Newspaper
Tuesday, Mar 04, 2003

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UTI Bank's offer to institutions

By Our Staff Correspondent

MUMBAI MARCH 3. The Board of Directors of UTI Bank has recommended, for the approval of shareholders, an increase in the authorised capital of the Bank from Rs. 230 crores to Rs. 300 crores.

The Board has also recommended the iSsue of 383.62 lakh fully paid equity shares of a face value of Rs. 10 each at a price of Rs. 42.75 per share (including premium of Rs. 32.75 per share) totalling Rs. 164 crores, through a preferential offer to institutions.

The preferential allotment recommended include Life Insurance Corporation of India 184 lakh shares, Citicorp Banking Corporation, Bahrain, 88.30 lakh shares, ChrysCapital LLC, Mauritius, 88.30 lakh shares and Karur Vysya Bank 23.01 lakh shares.

LIC, which is already a substantial investor in the bank, will raise its investment to 13.54 per cent of the bank's expanded equity. Citicorp Banking Corp and Chrya Capital's investment will constitute 3.84 per cent each of the bank's expanded equity, while that of Karur Vysya Bank will constitute 1 per cent of the expanded equity of the bank.

Following the preferential issue, the equity capital of the bank will increase to Rs. 230.18 crores, amounting to an increase of 20 per cent over the existing capital base of Rs. 191.81 crores. The shareholding of the promoters of UTI will come down to 33.56 per cent from 40.27 per cent.

The price of Rs. 42.75 is the minimum price in accordance with the SEBI formula for preferential issue (and is computed as the higher of the weekly high and low closing prices during the six month period and the two week period preceding 30 days prior to the shareholders meeting).

The bank has convened an extraordinary general meeting of the shareholders of the bank on March 28 in Mumbai for the purpose of shareholders approval and also of RBI, SEBI and other regulatory authorities.

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