IOB plans Rs 700 cr Singapore GDR

Indian Overseas Bank (IOB) today announced that a meeting of its board of directors is to be held on March 10, 2005, to consider a Rs 650-700 crore issue of equity capital through global depository receipts (GDR).

The GDR would be listed on the Singapore Stock Exchange subject to approvals from the appropriate authorities S C Gupta, chairman and managing director, IOB, said the bank would be raising about Singapore $250 million (about Rs 650 crore) so as to meet the Basel II norms, and simultaneously increase the bank's visibility in the Asian region.

IOB has a branch in Singapore. The equity capital will be raised through private placements in Singapore, said Gupta.

The terms and conditions will be finalised next week, he added. Prior to the planned GDR, IOB had raised Rs 240 crore from its second equity issue in September 2003 when the government's holding came down to 61.2 per cent.