20000402

Indian Global Trust raises fresh equity

HYDERABAD: The Global Trust Bank said it had raised Rs 1.47 billion by a private placement and preferential offer of shares and conversion of loan to equity.

The board of the bank, which met on Friday, allotted 14.8 million shares at a price of Rs 85 per share, aggregating to Rs 1.26 billion, mainly to funds, the bank said in a statement.

The price was higher than Friday's closing price of Rs 79.35 on the Bombay Stock Exchange.

Shareholders of the bank had earlier this week approved the issue of 26 million equity shares at a price not less than the one determined by guidelines set by the market regulator.

The statement said the International Finance Corporation (IFC), which had given a $10 million loan to the bank, converted $5.0 million of the amount to equity, the statement said.

The IFC, which had the option to convert the amount at Rs 60 a share, eventually exercised its right at Rs 85 a share, the statement said.-Reuters