Mumbai, July 5: Syndicate Bank today fixed the price band between Rs 46 and Rs 50 per share for its follow-on offering. The public issue will open on July 7.

At the upper end of the band, the price represents a discount of 8 per cent to the closing price of Syndicate Bank scrip at the Bombay Stock Exchange (BSE) today. The bank scrip closed at Rs 54.25 on the BSE after opening at Rs 56.50 and hitting an intra-day high of Rs 56.80.

The public sector bank is offering 5 crore shares to raise between Rs 250 crore and Rs 230 crore (at the upper and lower end of the price band, respectively).

Of the total offer, 50 lakh shares are reserved for employees, 2.25 crore shares are reserved for allotment to qualified institutional buyers on a discretionary basis and 67.5 lakh shares have been kept aside for non-institutional buyers. The balance 1.575 crore shares are on offer for retail investors on a proportionate basis.

The proceeds from the IPO will partly fund the bank’s capital requirements in accordance with the Basel II norms and partly its growth plans. Post-issue, the bank’s paid-up capital will rise to Rs 521.9 crore from Rs 471.9 crore and the government holding will come down to 66.5 per cent from 73.5 per cent at present.