UTI Bank GDR float next week

UTI Bank's maiden global depository receipts (GDR) issue of around $200 million is likely to open late next week. The bank has filed its draft prospectus with the UK listing authority and it is being scrutinised, said banking sources.

The UTI Bank top brass "" chairman and managing director P J Nayak, executive director S Chatterjee and other senior executives "" are participating in a road show in London to meet prospective investors, sources added.

The bank plans to complete the capital raising process by the end of March. The capital will support the bank's growth for the next 2-3 years, said the senior official. Fresh infusion of capital will enable the bank to boost its capital adequacy ratio to above 11 per cent from the current level of 9.38 per cent.

UTI Bank GDR will be listed on the London Stock Exchange (LSE). The bank will also get a section 144 (A) filing done with the Securities and Exchange Commission (SEC), which will give it access to the US institutional investors. Citigroup International and Merrill Lynch are the co-book runners to the issue, while ABN Amro and Rothschild are the joint lead managers to the issue.

Fresh capital infusion will lead to 20 per cent dilution in shareholding. Post-capital infusion UTI's stake in the bank will come down to around 27 per cent (33.32 per cent). LIC's holding will dilute to about 11.50 per cent (13 per cent ) and GIC's holding will come down marginally to 2.5 per cent (3 per cent), while HSBC's holding in the bank will stand reduced to 12 per cent (14 per cent).

Post-issue, foreign holding in the bank will go up to around 43 per cent from the existing 32 per cent.