BUSINESS

Andhra Bank plans follow-on public issue

Special Correspondent

HYDERABAD: Andhra Bank is entering the capital market with a follow-on public issue of 8.5 crore equity shares of Rs. 10 each at a premium to be decided through the book-built process.

Of the total issue, 8.5 lakh equity shares will be reserved for allotment to employees and the balance 7.65 crore will be offered to the public.

The bank decided to allot up to 50 per cent of the net public issue to qualified institutional buyers including five per cent reservation for allotment to mutual funds. Non-institutional investors will be offered 15 per cent while 35 per cent equity shares will be offered to retail investors.

The issue will constitute 17.53 per cent of the post-issue, fully diluted paid-up equity capital of the bank and the follow-on issue will bring down the Union Government's shareholding from 62.5 per cent to 51.55 per cent.