Syndicate Bank public issue in July

Syndicate Bank plans to hit the market with its second public issue of equity shares in the first week of July at a premium to be decided through bookbuilding.

Syndicate Bank shares closed 1.30 per cent higher at Rs 58.30 on Friday, after touching a high of Rs 59.15. The share price is 4.29 per cent higher from Rs 55.90 a month ago.

"The issue is being made to augment the capital requirements in keeping with Basel-II norms as also to meet our growth objectives," said N Kantha Kumar, chairman.

The bank proposes to issue five crore equity shares of Rs 10 each through book-building, with 50 lakh shares reserved for the bank's employees, 2.25 crore for qualified institutional buyers on a discretionary basis and 67.5 lakh shares for non-institutional buyers. The balance 1.57 crore shares will be allotted to retail investors on a proportionate basis.

After the public issue, government's holding in Syndicate Bank will fall to 66.47 per cent from 73.52 per cent. The bank earlier this week raised Rs 500 crore of Tier-II capital through issue of unsecured redeemable, non-convertible bonds.

The book running lead managers for the public issue of equity shares are SBI Capital Markets, Enam Financial Consultants, JM Morgan Stanley and SSKI Corporate Finance.