Catholic Syrian Bank is holding an extraordinary general meeting in Thrissur on Thursday to give final shape to its impending initial public offering.
The IPO is intended to support business plans and ensure the bank deals with regulatory compliance with respect to capital adequacy.
The bank proposes to create, offer and issue fresh equity shares with a face value of ₹10 each up to the remaining un-issued 7.4 crore shares of face value of ₹10 each and offer them to various categories of investors.
The board is proposing to move a special resolution for altering the Articles of Association so that they align with the Companies Act 2013. The present authorised capital is ₹120 crore comprising equity shares of ₹100 crore and preference shares of ₹20 crore.
Of this, equity shares to the tune of ₹45.25 crore have so far been issued and the whole of the preference capital remains unissued. The capital clause is sought to be altered by cancelling the unissued 20 lakh preference shares of ₹100 each and re-classify them concurrently as two crore equity shares of ₹10 each.
The board proposes to allow permitted foreign investors to acquire bank shares through either purchase from the stock exchange or in any other manner including the portfolio investment scheme. This will be subject to the condition that their aggregate holding shall not exceed 49 per cent of the paid-up capital. The existing aggregate FII (under foreign direct investment route) holding is 13.83 per cent. The existing NRI holding is 20.47 per cent. The extraordinary general meeting will seek shareholder approval to raise this to a level not exceeding the 24 per cent prescribed by the Reserve Bank.
FDI limitsThe bank also proposes to apply to the Centre for increase in the FDI limits after passing an ordinary resolution.
It feels that it would be beneficial to increase the FDI limits to the regulatory cap of 74 per cent since the proposed IPO and listing may raise the foreign shareholding beyond 49 per cent.