Mumbai, June 17: The Securities and Exchange Board of India (Sebi) has approved Syndicate Bank’s proposal for a second public issue. The 100 per cent book-built issue will open for subscription in the first week of July.

The bank plans to issue 50 million shares of Rs 10 each for cash at a premium to be decided through the book building process. Syndicate Bank shares today closed on Bombay Stock Exchange marginally higher at Rs 58.30 from Thursday’s close at Rs 57.55.

The bank has set aside 5 million shares for its employees, 22.5 million for qualified institutional buyers to be allotted on a discretionary basis and 6.75 million for non-institutional buyers. The balance 15.75 million shares would be allotted to retail investors on a proportionate basis.

“The issue will augment the capital requirements in keeping with Basel II norms and also meet our growth plans,” said N. Kantha Kumar, chairman and managing director of Syndicate Bank.

The book-running lead managers for the public issue are SBI Capital Markets Ltd, Enam Financial Consultants Pvt Ltd, JM Morgan Stanley Pvt Ltd and SSKI Corporate Finance Private Ltd.