Andhra Bank is tapping the capital market with a follow-on public issue of 8.5 crore equity shares for meeting Basel-II norms and funding capital requirements.The issue, which opens on January 16 and closes on January 20, will offer equity shares of Rs 10 each for cash at a premium to be decided through the book-building process.The price band for the issue will be fixed one day prior to the opening date."The main aim of the public issue is to raise funds for meeting the Basel-II requirements and meeting the future expansion plans of the bank," K Ramakrishnan, CMD of Andhra Bank, said today.Post-issue, the government's shareholding in the bank would come down to 51.55% from the current level of 62.50%.
