• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Through overseas issue, preferential allotment

MR P.J. NAYAK

Mumbai June 1 UTI Bank plans to raise fresh capital by way of an overseas issue and a preferential allotment to promoters.

In a notice to the Bombay Stock Exchange, the bank said it would raise its Tier-I capital (core capital) by issuing up to 4.23 crore equity shares. Overseas issue would be equity linked securities or depository receipts.

As per Friday's share price of Rs 576.15 on the Bombay Stock Exchange, the bank would be raising around Rs 2,442 crore through the fresh issue.

The bank will also offer 3.19 crore shares to the promoters on a preferential allotment basis. This is to help maintain the promoters' stake after the overseas issue.

A senior bank official said the total amount of capital raised would depend on the promoters' subscription to the preferential issue. The bank hopes that the issue would meet the bank's capital requirements for the next three years.

The board has also decided to increase the authorised share capital of the bank to Rs 500 crore from the current Rs 300 crore. An extraordinary general meeting of the shareholders of the bank will be convened on June 25 for hiking the authorised capital.

Rechristening

Meanwhile, necessary documentary changes will be made to rechristen the bank as "Axis Bank Ltd", said the BSE notice.

The board members have also approved of the appointment of Mr P.J. Nayak as the whole-time Chairman from August 1, 2007 to July 31, 2009, subject to the approval of the RBI.

The Articles of Association will be amended with effect from August 1 for the appointment of a whole-time chairman. The board has also approved of the revised remuneration payable to Mr Nayak, subject to the banking regulator's approval.

Mr Surendra Singh, Dr R.H. Patil and Ms Rama Bijapurkar who had retired by rotation have been reappointed as directors.

More Stories on : Private Banks | Overseas Borrowings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex reserves rise $952 m

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line