Private sector UTI Bank?s global depository receipt issue of $218.07 million has been subscribed two times. Each GDR, representing one underlying share, was priced at $15.43 (Rs 620), a discount of 1.7% to the closing price of the bank?s GDR on Friday. The GDR, to be listed on Monday, is part of the bank?s $1-billion fund-raising programme.
The bank intends to retain the entire proceeds generated from the 14.13-million share offering. There was no greenshoe option.
Somnath Sengupta, president, UTI Bank, told FE investors from Singapore, Frankfurt, London, the US, the UK, Hong Kong and Germany subscribed to the issue. The bank will mobilise $436 million and $346 million through qualified institutional placements (QIP) and preferential allotments, respectively, in the ensuing week at the same GDR pricing. SUUTI and LIC are the preferential shareholders.
Asked why the listing of the GDR could not happen in the late hours of Friday, Sengupta said, ?The bank had started the pricing of the GDR at 5 pm as per London time and by the time we could finish it, the London Stock Exchange had closed. We decided to complete the process when the operations at the LSE resumes on Monday.?
Though confirming that the QIP included Indian shareholders, Sengupta did not reveal their names. The bank has set the issue price of the equity shares to be offered in the proposed QIP at Rs 620 a share. The size of the QIP would be Rs 1,752 crore, said a release by the bank.
The bank proposes to allot, on a preferential basis, 2,56,21,076 shares to its promoters at Rs 620 a share aggregating Rs 1,588 crore. The settlement for all the three offerings will be done on July 27. Citi and Goldman Sachs acted as the joint book-runners for the GDR and QIP offerings.
