State Bank of Travancores Rs 474 Crore Rights Issue to Open on March 17

New Delhi: State Bank of Travancore's Rs 474 crore rights issue will open on March 17 and funds garnered through the issue will be utilised towards increasing the capital base.

The issue will close on March 31 this year, according to information available with the capital markets regulator Securities and Exchange Board of India (Sebi).

In the rights issue, shares are issued to existing investors based on their holdings at a pre-determined price and ratio.

State Bank of Travancore (SBT) is a subsidiary of country's largest lender State Bank of India (SBI).

The issue seeks to mobilise Rs 474.03 crore consisting of over 1.18 crore equity shares of face value of Rs 10 each.

The equity shares are being offered on a rights basis to the eligible equity shareholders in the ratio of one equity shares for every five equity shares held on the record date of March 4.

"Issue of 1,18,50,694 equity shares with a face value of Rs 10 each for cash at a price of Rs 400 including a premium of Rs 390 per equity shares aggregating to Rs 474.03 crore to the existing equity shareholders of our bank on rights basis," the bank noted.

The bank intends to utilise the net proceeds towards augmenting capital base to meet its capital requirements, primarily loan and investment portfolio.

The issue is being managed by BOB Capital Markets and SBI Capital Markets.