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Canara
Bank plans initial public offering
Our Banking Bureau
13 May 2002
 Bangalore:
Canara Bank is
planning to come up with an initial public offering (IPO) of Rs
175 crore to Rs 225 crore in August or September 2002. The work
towards fixing the issue price and the appointment of merchant
bankers will begin this month.
Currently Canara Bank has
an equity capital base of Rs 578 crore, says Canara Bank chairman
R V Shastri.
Declining to detail the
possible premium on the forthcoming issue, Shastri says: “Though
there will be a good premium, it will be made affordable to the
public.” The bank also rules out the book-building route to
subscribe the issue. “We will go to the public directly.”
Canara Bank has decided
to come out with the IPO irrespective of the prevailing market
conditions. The tier-II capitalisation route is  not
attractive because securities are treated as subordinated debts as
long as the maturity period does not exceed five years.
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