Date:11/02/2006 URL: http://www.thehindubusinessline.com/2006/02/11/stories/2006021103190600.htm

Back SIB hopes for keen institutional interest in issue

Our Bureau

Kochi , Feb. 10

SOUTH Indian Bank's follow-on public issue for Rs 150 crore, with a price band of Rs 60-66, opened today.

FIIs, Indian institutions, banks, insurance companies and corporate bodies have already built up a sizeable position, accounting for close to 40 per cent of the bank's current paid-up equity.

While banks and insurance companies hold 14.1 per cent of the equity, corporate bodies 10.8 per cent, overseas corporate bodies 5.7 per cent and FIIs account for 4.2 per cent.

Addressing a pre-launch press conference, Dr V.A. Joseph, Chairman and Managing Director of the bank, said that he expected the institutional interest not only to be sustained, but also enhanced further after the issue. The issue is slated to close on February 15.

ICICI Bank, Federal Bank and Oriental Insurance Company are some of the major banks and insurance companies which have a stake in the bank. India Capital Fund, Citigroup Global Markets, India Institutional Fund are the major FIIs, and Reliance Capital Trustee Co, Reliance Banking Fund and Janam Securities are some of the institutional investors.

ICICI Bank, which had 11 per cent stake in the bank, has reduced it to nine per cent. Post-issue, ICICI Bank stake is slated to fall to seven per cent, Dr Joseph said.