UTI Bank will hit the market next week with a $1 billion-plus equity issue. The bank will raise the money from a mix of preferential issue to promoters and fresh issues to qualified institutional buyers and GDR investors.
The bank’s capital raising plans were approved by the board, which met here on Thursday to consider the results for the first quarter and also decide on the equity expansion. Buoyed by a 70.7% growth in non-interest income, the bank announced a 45.2% rise in net profit to Rs 175 crore for the first quarter ended June 30, 2007.
The bank also decided to have a uniform price for all issues. Sources said the issue is likely to be priced at around Rs 650 per share. The bank will issue 3.19 crore shares to promoters. At Rs 650, UTI Bank will raise around Rs 2,075 crore from the preferential issue. The Special Undertaking of the Unit Trust of India (SUUTI) and Life Insurance Corporation of India have agreed to subscribe to the issue. However, some smaller subsidiaries of the General Insurance Corporation (GIC) may not subscribe to the preferential issue. The bank’s scrip closed at Rs 641.1 on the BSE on Thursday.
Read more in The Economic Times article.
Showing posts with label SUUTI. Show all posts
Showing posts with label SUUTI. Show all posts
Friday, July 13, 2007
Thursday, June 28, 2007
UTI Bank promoters plan fresh retail issue
The Specified Undertaking of Unit Trust of India (SUUTI) and the Life Insurance Corporation (LIC), the principal promoter shareholders of UTI Bank, want the bank management to give retail investors a chance to make further investments in the bank’s growth through subscription to fresh equity shares.
UTI Bank was planning to raise $600 million through a global depository receipts (GDR) issue and a simultaneous preferential offer to its promoters, which also include the General Insurance Corporation (GIC).
The bank, at its extraordinary general meeting on June 25, deferred its capital raising plans after both SUUTI, an entity carved out of the erstwhile Unit Trust of India, and LIC asked for more time to take a call on subscribing to the preferential offer. SUUTI is the largest shareholder in the bank with 27.43 per cent stake and LIC owns 10.38 per cent of the bank.
Read more in The Business Standard article
UTI Bank was planning to raise $600 million through a global depository receipts (GDR) issue and a simultaneous preferential offer to its promoters, which also include the General Insurance Corporation (GIC).
The bank, at its extraordinary general meeting on June 25, deferred its capital raising plans after both SUUTI, an entity carved out of the erstwhile Unit Trust of India, and LIC asked for more time to take a call on subscribing to the preferential offer. SUUTI is the largest shareholder in the bank with 27.43 per cent stake and LIC owns 10.38 per cent of the bank.
Read more in The Business Standard article
Tuesday, June 26, 2007
UTI Bank puts off $600m GDR
UTI Bank, a mid-sized private sector bank, has deferred its $600 million global depository receipts (GDR) issue as well as the simultaneous preferential offer to its promoters.
The bank said the decision to put off capital raising plans was taken in order to provide promoter shareholders - Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation and General Insurance Corporation - more time to take a call on subscribing to the preferential offer.
SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake. LIC owns 10.38 per cent of the bank’s equity and GIC 2.38 per cent.
In a statement released after the bank’s extraordinary general meeting (EGM) here today, UTI Bank said the special resolutions on raising capital have been deferred “to provide promoter shareholders further time for consultation” on the preferential share offer.
The shareholders would again meet on July 13 to consider the plans to raise capital. The shareholders, however, passed a resolution increasing the bank’s authorised capital to Rs 500 crore from Rs 300 crore.
Banking sources said LIC, which bid in the recently concluded ICICI Bank’s follow-on equity offer for shares worth about Rs 4,000 crore, has asked for more time to arrange for funds as it was currently experiencing a “tight liquidity” situation.
SUUTI, which has already obtained the government’s permission, also needs to arrange for funds to subscribe to its portion of the preferential offer.
Read more in The Business Standard article.
The bank said the decision to put off capital raising plans was taken in order to provide promoter shareholders - Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation and General Insurance Corporation - more time to take a call on subscribing to the preferential offer.
SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake. LIC owns 10.38 per cent of the bank’s equity and GIC 2.38 per cent.
In a statement released after the bank’s extraordinary general meeting (EGM) here today, UTI Bank said the special resolutions on raising capital have been deferred “to provide promoter shareholders further time for consultation” on the preferential share offer.
The shareholders would again meet on July 13 to consider the plans to raise capital. The shareholders, however, passed a resolution increasing the bank’s authorised capital to Rs 500 crore from Rs 300 crore.
Banking sources said LIC, which bid in the recently concluded ICICI Bank’s follow-on equity offer for shares worth about Rs 4,000 crore, has asked for more time to arrange for funds as it was currently experiencing a “tight liquidity” situation.
SUUTI, which has already obtained the government’s permission, also needs to arrange for funds to subscribe to its portion of the preferential offer.
Read more in The Business Standard article.
Tuesday, May 15, 2007
STCI to sell UTI Sec stake for Rs 275 crore
Securities Trading Corporation of India (STCI), a primary dealer in government securities, will sell its entire stake in UTI Securities to Standard Chartered Bank in two years at a pre-determined price of Rs 275 crore, according to the memorandum of understanding (MoU) signed between both the parties.
The complete exit by STCI from UTI Securities at a nominal profit of Rs 10 crore after having payed Rs 265 crore to acquire the company from Specified Undertaking of UTI (SUUTI) showed that its decision to enter the retail broking business was a wrong move, said market players.
It is learnt that as per the terms of the MoU, Stanchart will buy 100 per cent stake in UTI Securities in three stages by 2009 for a total consideration of about Rs 275 crore. At a time when the domestic brokerages are attracting huge investments from private equity and foreign players, the UTI Securities deal showed that STCI could not add much value to the business during last one year.
Read more in The Business Standard article.
The complete exit by STCI from UTI Securities at a nominal profit of Rs 10 crore after having payed Rs 265 crore to acquire the company from Specified Undertaking of UTI (SUUTI) showed that its decision to enter the retail broking business was a wrong move, said market players.
It is learnt that as per the terms of the MoU, Stanchart will buy 100 per cent stake in UTI Securities in three stages by 2009 for a total consideration of about Rs 275 crore. At a time when the domestic brokerages are attracting huge investments from private equity and foreign players, the UTI Securities deal showed that STCI could not add much value to the business during last one year.
Read more in The Business Standard article.
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