UCO Bank plans follow-on public issue

UCO Bank plans to come up with a follow-on public offering (FPO) of shares during the last quarter of the current fiscal or first quarter of 2008-09, its Chairman and Managing Director, Mr S.K.Goel, has said. “We hope to raise Rs 200-Rs 250 crore in the FPO. The capital raising is, however, contingent on the Finance Ministry approving a capital restructuring proposal submitted by us and pending before the Government,” Mr Goel said. He said that UCO Bank has sought Government approval to convert Rs 300 crore of equity capital into preference share capital. UCO Bank’s paid-up capital as on end-June 2007 stood at Rs 799.36 crore. If the FPO goes through, the Government’s stake in the bank would come down from 74.98 per cent to 55-56 per cent, he added