Securities and Exchange Board of India has given its nod to Bank of Maharashtra's initial public offering for Rs 10 crore (Rs 100 million) new shares of Rs 10 each with premium of Rs 13 per share, slated to hit the market on February 25, 2004.

The current paid-up capital of the state-owned bank is pegged at Rs 330.52 crore (Rs 3.3 billion). After the IPO, equity base would grow to Rs 430.52 crore (Rs 4.3 billion). The share permium amount would be Rs 130 crore (Rs 1.3 billion).

Pune-based bank is raising funds to augment its capital base and raise long-term resources for the business growth, BoM said in a statement in Mumbai on Saturday.

The capital adequacy of the bank as on March 31, 2003 stood at 12.05 per cent, higher than Reserve Bank of India's prescribed minimum of nine per cent, it added.