Indian state-run Syndicate Bank Ltd has launched a share sale to institutional investors, seeking to raise up to 12 billion rupees (USD 186.4 million) to help boost its capital ratio, sources with direct knowledge said on Tuesday.
The deal has a base size of up to 7 billion rupees with an upsize option of up to 5 billion rupees, the sources said, adding the bank has set an indicative sale price of 84.15 rupees a share.
Ahead of the launch of the share sale, the stock closed at 84.45 rupees on the National Stock Exchange on Tuesday.
Equirus Capital, BOB Capital Markets, BNP Paribas, Centrum Capital, Elara Capital and IDBI Capital are the banks managing the share sale, according to Syndicate Bank's regulatory filing with the stock exchanges.
India's state-run banks are raising funds from share sales as part of the government's recapitalisation plan for the lenders that will also see New Delhi injecting 1.35 trillion rupees in them through recapitalisation bonds.