Staff Reporter

BANGALORE: Indian Bank, which is celebrating its centenary year, will tap the capital market with the launch of the initial public offer (IPO) on February 5.

As many as 8.6 crore shares of Rs. 10 each will be on offer at a price band fixed between Rs. 77 and Rs. 91 a share. The offer will close on February 9.

M.S. Sundar Rajan, Executive Director of the bank, told presspersons here on Thursday that 20 per cent of the bank's equity was being offered through the IPO. The shares would be listed both on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

"The bank has reserved 10 per cent of the issue for allocation to employees. Of the net offer for the public, 60 per cent will be allotted to qualified institutional buyers (QIB).

"Within the QIB portion, five per cent will be allotted to mutual funds. As much as 10 per cent will be allocated to non-institutional bidders and the remaining 30 per cent will be available for allocation to retail investors on a proportionate basis," he said. After the IPO, the Government of India will hold 80 per cent of the equity share capital of the bank.