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Repco HomeFin, the housing finance arm of state-run Repco Bank, today said it will divest a little over 25% of its stake through a public issue and hopes to raise around Rs 270 crore.
The company has fixed a price-band in the range of Rs 165-172 per equity share for the initial public offer which opens on March 13.
"The net proceeds of the issue will be utilised towards augmentation of our capital base, which will result in an increase in our net worth and enable us to meet our future capital adequacy requirements," Repco Home Finance Managing Director R Varadarajan told reporters here.
The Chennai-headquartered Repco Home Finance is promoted by the Repatriates Co-operative Finance and Development Bank (Repco Bank), which was set up in April 2000 to extend banking services to rehabilitate the repatriates from Sri Lanka, Myanmar, Vietnam and other countries.
Centre owns 76.83% in the Repco Bank, while Tamil Nadu holds 3.05%, Andhra 1.81%, Kerala 0.62%, Karnataka 0.18% and repatriates 17.51%.
The company will offer 15,720,262 equity shares or 25.29% with a face value of Rs 10 each. The issue will close on March 15. The company is offering a discount of Rs 16 on the issue price to employees.
Post issue, the share of Repco Bank will come down to 37.3% from existing 50.02%.
