Central Bank to come out with IPO; issues 5 merchant bankers for the issue

Mumbai-based public sector bank Central Bank of India is coming out with an initial public offering of Rs. 1000 crores, expected by end-May 2007. The bank has finalized five merchant bankers for the issue. The bank has appointed IDBI Capital Markets, Kotak Securities, ICICI Securities, Citigroup Global Markets and Enam Financial as the lead managers to the issue.

The bank has received all regulatory clearances for converting about 71% of its large equity base into preference shares. The proposal for conversion of shares, which was stuck at the Reserve Bank of India (RBI), was recently cleared by the government. The bank is negotiating with the government for the coupon rate on the preference shares. The government wants a floating coupon rate of 100 basis points above the RBI’s repo rate, which is currently at 7.75%.

Of the Rs. 1124.14 crores equity capital, Rs. 800 crores would be converted into preference shares. The conversion will lower the bank’s paid-up equity capital to Rs. 324.14 crores. Central Bank, which had planned to get listed in the fourth quarter of 2006-07, as on December 31, 2006, had a total business of Rs. 121,301 crores, comprising deposits of Rs. 74,974 crores and advances of Rs. 46,327 crores.

Read the article in Business Standard.

Amitabh Chakraborty joins Religare Securities as president of the equity business

Amitabh Chakraborty, who was heading the research team at BRICS Securities, has now joined Religare Securities Limited, a Ranbaxy group company, as President, Equity Business. He will be based out of Mumbai.

Mr. Chakraborty has been mandated for setting up the equity research team and spearheading the equity related initiatives to drive the high profile equity broking business at Religare.

Mr. Chakraborty was earlier with BRICS Securities. Prior to BRICS, he was heading the research team at Kotak Securities, from where he was sacked for an undisclosed internal code of violation.

Read the press release on Moneycontrol.com.

BSE to stick to May deadline for float

The Bombay Stock Exchange (BSE) will stick to the May 2007 deadline of completing its initial public offering (IPO) and is talking to select foreign exchanges for a possible partnership (See Related Post).

The exchange has appointed Morgan Stanley, Merrill Lynch and Kotak Securities as its merchant bankers for the proposed IPO. For valuation, the exchange is banking on the Sensex brand.

Read the Business Standard article.