Centurion Bank garners Rs 300 crore via GDR issue

Mumbai, March 23 | Updated: Mar 24 2005, 06:15am hrs
Centurion Bank has raised $70 million (around Rs 300 crore) through a global depository receipts (GDRs) issue. The issue will be listed on the Luxembourg Stock Exchange.

The size of the issue is around 1.4 crore GDRs at a price of $4.80 per GDR. Each GDR represents 15 common shares of the bank of face value of Rs 1 per share.

The freshly issued capital will be used primarily to enhance the banks capital adequacy ratio and increase its capacity to lend, said the bank in a statement.

Centurion Bank has also given a greenshoe option to the bookrunner for raising up to $10 million. Citigroup acted as the sole bookrunner and lead manager to the GDR offering.

The bank had received shareholder approval in January to raise around Rs 600 crore in one or more tranches, either by way of private placement of equity shares or by way of an international offering (ADR/GDR/FCCB) or any other convertible instruments.

UTI Bank had last week raised $239.3 million through a GDR issue. The issue was over-subscribed six times.