Andhra Bank lines up Rs 800 crore public offer

The Hyderabad-based Andhra Bank has filed for its follow-on public offer for 8.5 crore new equity shares to raise nearly Rs 800 crore to shore up its capital. The funds would be used to implement Basel II norms and support future credit growth.

Andhra Bank shares closed at Rs 92.80 on the Bombay Stock Exchange today. The issue would constitute 17.53 per cent of the paid-up equity capital after the public issue. The net offer to public is for 7.6 crore shares of Rs 10 each. The price would determined through book building.

The government's stake in Andhra Bank will fall close to 51.5 per cent. After the issue, its holding will drop to 51.5 per cent from 62.5 per cent now.

ICICI Bank's follow-on issue to raise a total of Rs 5,750 crore will open on December 1 and the price band has been fixed at Rs 505 to Rs 545. Bank of Baroda has also filed its prospectus for a follow-on equity issue to raise close to Rs 1,000 crore.

Andhra bank's capital adequacy ratio stood at 11.94 per cent as on September 30, 2005 against 14 per cent a year ago. The bank reported a 21.55 per cent growth in its net profit to Rs 132.89 crore in the July-September 2005 quarter against Rs 109.33 crore a year earlier.