PSU lender Union Bank of India, on Tuesday, announced that it 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 the Acceleration 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 Institutions Placement subject to the required regulatory/statutory approvals,” the bank said in a stock exchange filing.
Also Read: HDFC Bank stock registers biggest intraday jump since December What sparked the rally?
The bank further informed that the opening date of the issue is February 20, today.
“We further wish to inform you that the ‘Relevant Date’ for the Issue, as per Regulation 171(b)(i) of the SEBI ICDR Regulations, is February 20, 2024 and accordingly the Retail Price in respect thereof. of the said Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹ 142.78 per Share Share. As per the SEBI ICDR Regulations, the Bank may offer a discount of not more than 5% on the Retail Price so calculated for the Issue,” the bank said.
Union Bank of India registered a whopping 60 percent growth in net profit, reaching ₹3,590 crore for the December quarter, attributable to reduced provisioning 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, as disclosed in the bank’s regulatory filing.
Also Read: Potential Multibagger: After 49% decline in list price, AMSEC sees over 119% up in Ideaforge in 2 years.
The total income of the bank for the third quarter of the ongoing fiscal rose to ₹29,137 crore, a remarkable increase from ₹24,154 crore reported a year earlier. Notably, the bank’s interest income also saw a notable improvement 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.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More or less
Published: 20 Feb 2024, 18:42 IST