OBC public offer opens on April 25

Oriental Bank of Commerce (OBC) will hit the market with its second public offer on April 25 for raising up to Rs 1,700 crore.

"The public offer for 5.8 crore equity shares will open on April 25 and close on April 29," a senior OBC official said today.

The bank will announce the price band for the issue two days before the issue opens for subscription, he said, adding the final price will be decided on a book-building process.

The OBC scrip is hovering around Rs 305 per share, and, going by the present price trend, the bank expects to raise up to Rs 1,700 crore.

OBC, however, is likely to offer the shares at a discount like recent offers from other PSU banks like PNB, Allahabad Bank and Dena Bank.

The shareholding of the government in OBC is slated to come down to 51.2% from 66% after the public offer.

OBC had filed the prospectus with Sebi for its public offer during the second week of March. The public offer is expected to raise the bank's capital adequacy ratio, which was eroded after it  acquired the ailing Global Trust Bank (GTB) along with bad assets worth Rs 1,400 crore.