AllBank plans overseas float

Allahabad Bank has decided to go for overseas listing following its Rs 100 crore-second public issue, which is set to hit the domestic market in early January. The bank is expecting a clearance from the government soon.

Highly placed officials at the bank said that the share was expected to be offered at Rs 50 including a premium of Rs 40, while consultants had suggested a Rs 35 premium for a share of Rs 10.

The bank will be offering one crore shares of Rs 10 each to the public which will bring down the government's holding to 54 per cent from the present level of 74 per cent. Allahabad Bank offered its initial issue at Rs 10 a year back and the scrip at present is doing the rounds at around Rs 57.

A number of merchant bankers like SBI Caps, MCS and Karvy have lined up for handling the issue.

Chairman and managing director, O N Singh said, "We are expecting the government's clearance soon and then would decide on the timing. It is likely to be in January."

Singh also said that the bank was considering an overseas listing after the second issue. "Allahabad bank has received excellent offers from foreign financial investors (FII). Given our price per earning ratio which stands at Rs 3 while the average P/E of the bank being Rs 5 there is enough scope for appreciation and we would take up the exercise after the current issue is over," he explained.

Allahabad Bank declared a 110 per cent growth in net profit to Rs 303 crore in the first half of the current year against Rs 143 crore in the previous corresponding period and expects to cross the Rs 1000 crore operating profit mark in 2004-05.

The bank declared a Rs 615 crore operating profit for the period against Rs 320 crore in the previous period.

It has also targeted 27 per cent business growth at Rs 61,000 crore for the year, while it has achieved Rs 55,330 crore in the period under consideration. Total deposit at the bank stood at Rs 36,002 crore while it advanced Rs 19,327 crore in the first half.