Mumbai, March 3: Life Insurance Corporation (LIC), Citicorp Banking Corporation, ChrysCapital LLC and Karur Vysya Bank will pick up equity stakes in UTI Bank in a preferential allotment at Rs 42.75 per share.
The bankís board cleared the Rs 164-crore issue, which will push up LICís stake to 13.54 per cent from 6.65 per cent. UTI Bankís main promoter, UTI-I, will hold 33.56 per cent, down from 40.27 per cent; the Mauritius-based CDC Financial Servicesí holding will come down to 20.14 per cent from 24.16 per cent at present.
The bankís authorised share capital will go up to Rs 230.18 crore after the issue, from Rs 191.81 crore. The board of directors today recommended an increase in its authorised share capital from Rs 230 crore to Rs 300 crore. Of the 3.83 crore equity shares to be issued soon, LIC will get 1.84 crore shares, Bahrainís Citicorp Banking Corporation 88.30 lakh shares, ChrysCapital LLC 88.30 lakh shares and Karur Vysya Bank 23.01 lakh shares.
Citicorp is registered as an FII with the Securities and Exchange Board of India (Sebi). It will be the investment vehicle for funds managed by UKís CVC International, a private equity arm of Citicorp. Its investment will constitute 3.84 per cent of UTI Bankís expanded equity.
Money pumped in by ChrysCapital LLC, also a private equity fund with a 3.84 per cent stake in UTI Bankís expanded equity, will be treated as foreign direct investment. Karur Vysya Bank, which has an ATM-sharing alliance with UTI Bank, will own around 1 per cent. The price of Rs 42.75 per share is the minimum that could be charged under Sebiís norms on preferential issues. The infusion will strengthen the bankís capital adequacy and fuel expansion plans.
Reports that the preferential allotment was through sent the UTI Bank scrip leaping 6.7 per cent to Rs 45.95 on Dalal Street, after opening at Rs 43.95. It closed at Rs 44.30.
IDBI Bank capital
IDBI Bank has decided to hike the amount to be raised for Tier-II capital by Rs five crore to Rs 45 crore. The amount would be raised in one or more tranches at an appropriate time, the bank told the Bombay Stock Exchange after its board meeting.