Dena Bank IPO

Dena Bank IPO price band at Rs 23-27 12/1/2004

MUMBAI: State-owned Dena Bank has finalised its over Rs 200 crore second public issue, scheduled to hit the market in the first quarter of next fiscal with a price band of Rs 23-27. The bank's board met on Wednesday and gave its nod for the issue, with a face value of Rs 80 crore, of 8 crore shares to the public which will bring down the Centre's stake in the bank to 51%.
The Centre will dilute its 20% stake in the bank to 51% and this is for the first time that any bank has been permitted to bring down the government stake to 51%. The bank is planning to file its prospectus on December 3rd and the lead managers of the issue are JM Morgan and SBI Caps. The bank needed capital to boost its capital adequacy ratio to 12% from 10% to expand its business. On the possible merger of the bank with another institution, bank has an immediate target to bring down sticky assets to 5% and increase the capital adequacy ratio to 12% in near future.

The bank had accessed the capital market six-seven years back with issues of Rs 30 (Rs 10+20) per share.

Dena Bank's stock was down 4.84% to Rs 30.45 on Thursday, coming off its day's high of Rs 32.90 on selling pressure at the counter after the bank announced that it had fixed a price band of Rs 23 to Rs 27 for its second public offer for Rs 80 crore. Over 9.61 lakh Dena Bank shares were traded on December 1st . More banks like Punjab National Bank, Bank of Baroda and Bank of India are now working on their second public issue plan.

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