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Canara
Bank plans to go for Rs 110-crore IPO
Our Banking Bureau
28 June 2002
 Bangalore:
Canara Bank plans
to go for a Rs 110-crore initial public offer in the third quarter
of this financial year.
Canara Bank chairman R V Shastri, however, says the pricing of the
equity has not yet been finalised. "But the issue will bring
down the government’s stake in the bank by 27 per cent. The
issue will also allow the bank to return the capital equivalent of
Rs 277 crore back to the government."
"The surrender of
the equity will have to be approved by the union cabinet, since it
will be a further dilution in stake. We are awaiting the
government’s response," he says.
The bank’s current
equity base is Rs 577.86 crore, entirely held by  the
government. The return of the equity will allow the bank’s
earning per share to remain high.
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