Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore.The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share.
With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank.
The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital.The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore.
The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development.However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%.
Read more in The Business Standard article.
Showing posts with label AIF Capital. Show all posts
Showing posts with label AIF Capital. Show all posts
Tuesday, July 31, 2007
Monday, July 2, 2007
AIF Cap, 3 other PE funds to get up to 5% each of Catholic Syrian Bank
Kerala-Based Catholic Syrian Bank is on course to have new investors on board — a clutch of private equity funds. AIF Capital, one of the largest Asia-based independent private equity funds, is now buying into the old private bank which has been a target of takeover attempts in the past.
The bank is now planning a preferential issue of 5% to the fund at Rs 190 a share, according to sources close to the development. Three other private equity funds are also on course to pick up an additional 13.5% stake through the preferential offering. CSB will make a preferential allotment of shares aggregating 4.5% each to three other private equity funds. The proposal is now before the banking regulator the Reserve Bank of India. AIF Capital has an exposure to the local banking sector through its acquisition of a 5.3% stake in Yes Bank.
Banking sources said that AIF Capital had initially proposed to acquire 15% stake in the bank. However, the Reserve Bank of India has allowed the private equity fund to buy only 5% of CSB’s equity. Although CSB is an unlisted bank, the placement of shares appears to be at a significant premium in the light of other deals which have been struck in the banking segment. Sources said that in informal deals, the shares of the bank are being exchanged at prices between Rs 100 and Rs 125. The current book value of the bank is Rs 175 per share.
Read more in The Economic Times article.
The bank is now planning a preferential issue of 5% to the fund at Rs 190 a share, according to sources close to the development. Three other private equity funds are also on course to pick up an additional 13.5% stake through the preferential offering. CSB will make a preferential allotment of shares aggregating 4.5% each to three other private equity funds. The proposal is now before the banking regulator the Reserve Bank of India. AIF Capital has an exposure to the local banking sector through its acquisition of a 5.3% stake in Yes Bank.
Banking sources said that AIF Capital had initially proposed to acquire 15% stake in the bank. However, the Reserve Bank of India has allowed the private equity fund to buy only 5% of CSB’s equity. Although CSB is an unlisted bank, the placement of shares appears to be at a significant premium in the light of other deals which have been struck in the banking segment. Sources said that in informal deals, the shares of the bank are being exchanged at prices between Rs 100 and Rs 125. The current book value of the bank is Rs 175 per share.
Read more in The Economic Times article.
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