Initial public offerings of state-owned Punjab & Sind Bank and L&T Finance - non-banking finance company and a subsidiary of engineering and construction major L&T - are likely to be launched next week, reports CNBC-TV18.
Punjab & Sind Bank proposes to enter the capital markets with an initial public offering (IPO) of 4 crore equity shares. The issue comprises a net issue to the public of 3.8 crore equity shares and a reservation of 20 lakh equity shares for subscription by eligible employees. The issue shall constitute 17.93% of the post-issue share capital of the bank.
The objects of the issue are to augment capital base to meet the future capital requirements arising out of the growth in assets due to the growth of the Indian economy.
President of India, acting through the Ministry of Finance, GoI holds 100% stake in the bank, which will be reduced to 82.07% post issue.
SBI Capital Markets Limited, Enam Securities Pvt Ltd and ICICI Securities Limited are the book running lead managers to the issue.
As per draft prospectus, L&T Finance is coming out with an IPO of Rs 1500 crore.
It is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services. It is registered with the RBI as an NBFC-ND-SI, and has applied for registration as a CIC.
Earlier in an interview with CNBC-TV18, AM Naik, CMD of L&T said parametres for a banking licence is expected by March 2011. Naik reitereated that the L&T Finance has been structured to become a potential bank and added that its IPO should come out by January.
L&T Finance intends to utilise issue proceeds for augmenting the capital base of L&T Finance and L&T Infra, to meet the capital adequacy requirements to support the future growth in their business.
JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited are joint global coordinators and book running lead managers to the issue. Barclays Securities (India) Private Limited and Credit Suisse Securities (India) Private Limited were other book running lead managers. Equirus Capital Private Limited is the co-book running lead manager.
Source: www.moneycontrol.com
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