Bank of Muscat, TVS Capital, Aditya Birla PE invest in City Union Bank's QIP

The issue was subscribed 3.4 times of the full book

Bank of Muscat, TVS Capital, Amansa Capital, Aditya Birla PE are among the investors who have shown interest in City Union Bank’s Rs 350-crore QIP. The issue opened Monday evening. According to sources, the FII investors include Bank of Muscat, Amansa Capital and NT Asset Management while the domestic investors include ICICI Pru, Aditya Birla PE and TVS Capital.

According to ICICI Securities, one of the book running lead managers, CUB is a fast growing SME focused bank with a highly diversified, high quality loan and deposit books. “The equity funds raised will be utilised for growing the loan book, boost Tier 1 Capital and infrastructure of the bank. The issue was oversubscribed 4.73x of the base book and 3.38x of the full book, with substantial demand coming from long only investors,” it said.

Market sources said Edelweiss was lead manager for the issue. Others included Axis Capital, Kotak, Spark Capital and Ambit Capital.

Sources said the bank had received over Rs 1,200 crore. They said this should suffice for supporting growth in the next three years.

The Tier-I capital is around 14.5 per cent. As at March-emd, the Basel-II capital adequacy ratio was 15.11 per cent as compared with 13.98 per cent a year before. The lender reported a marginal increase in net profit to Rs 83.3 crore in the March quarter, compared with Rs 82.5 crore a year before. Total income was up 7 per cent to Rs 726 crore from Rs 678 crore a year before. The total income rose to Rs 726 crore from Rs 678 crore a year before, a rise of seven per cent.