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PSU lender Union Bank of India, on Tuesday, announced that it plans to raise ₹3,000 crore through a 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 Raising Capital Funds (“Committee”) has at its meeting held today i.e. February 20, 2024 approved the raising of funds for an amount not exceeding ₹3,000 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals,” said the bank in a stock exchange filing.
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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 purpose of the Issue, in terms of the Regulation 171(b)(i) of the SEBI ICDR Regulations, is February 20, 2024 and accordingly the Floor Price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹ 142.78 per Equity Share. Pursuant to the SEBI ICDR Regulations, the Bank may offer a discount of not more than 5% on the Floor Price so calculated for the Issue,” the bank said.
Union Bank of India recorded a substantial 60 percent surge in net profit, reaching ₹3,590 crore for the December quarter, attributable to reduced provisioning and enhanced interest income. This marked a significant improvement from the net profit of ₹2,249 crore reported in the corresponding period of the previous year, as disclosed in the bank’s regulatory filing.
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The bank’s total income for the third quarter of the ongoing fiscal rose to ₹29,137 crore, a notable increase from ₹24,154 crore reported a year earlier. Notably, the bank’s interest income also saw a noteworthy improvement during the third quarter of the current fiscal, rising to ₹25,363 crore compared to ₹20,883 crore recorded in the same period last year.
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Published: 20 Feb 2024, 06:42 PM IST
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