Indian Bank to raise Rs 800-1,200 cr

The Govt-owned bank is planning to raise money through its initial public offer in early 2007 to shore up its capital base.

Indian Bank is targeting to raise about Rs 800-Rs 1,200 crore through its initial public offer in early 2007 to shore up its capital base.

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"The IPO will be 25 per cent of the restructured capital and 20 per cent post issue," Indian Bank Chairman KC Chakrabarty said in New Delhi.

Part of the equity prior to the issue will be converted into preference shares and would be issued to the government, which will own 80 per cent post IPO.

The government currently owns 100 per cent in the Chennai-based bank.

He said the bank is raising the resources to maintain a capital adequacy ratio of 12 per cent and to meet future expansion in business.