Union Bank of India’s share price jumped nearly 7 percent on Wednesday, February 21, after the PSU lender announced its plans to raise. ₹3,000 crore through qualified institutional placement (QIP), with a floor price set at ₹142.78 per share.
“We wish to inform you that the Committee of Directors for Acquisition of Capital Funds (“Committee”) at its meeting held today, that is February 20, 2024, approved the raising of funds for an amount not exceeding. ₹3,000 crore by issue of equity shares through Qualified Institutional Placement subject to the requisite regulatory/statutory approvals,” the bank said in a stock exchange filing. The bank also informed that the opening date of the issue was February 20.
The stock rose as much as 6.8 percent to its intraday high of ₹150.70. It is now just 3 percent away from its 52-week high of ₹155.30, hit on February 5, 2024, and is up 150 percent from its 52-week low of ₹60.32, hit March 28, 2023.
Meanwhile, in the last one year too the stock has given a multibagger return, nearly 101 percent. Just in February so far, it has risen 5.6 percent, extending gains for the fourth straight month. Before that, it added 17.5 percent in January 2024, 10.4 percent in December 2023, and 6.15 percent in November 2023.
Union Bank of India registered a stellar 60 percent year-on-year (YoY) increase in its net profit at ₹3,590 crore for the December quarter due to reduced provision and enhanced interest income. This marked a significant improvement in the net profit of ₹2,249 crore reported in the corresponding period of the previous year.
The lender’s total revenue for the third quarter of the ongoing fiscal rose nearly 21 percent YoY to ₹29,137 crores against ₹24,154 crore reported a year earlier. Notably, the bank’s interest income also saw a remarkable 21 percent improvement YoY during the third quarter of the current fiscal, increasing to ₹25,363 crore as compared to ₹20,883 crore recorded in the same period last year.
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Published: 21 Feb 2024, 10:38 IST