Union Bank of India shares rise 5% on launch of ₹3,000-crore QIP
The indicative issue price is at ₹135.65, which is a discount of 3.9% to the lender's closing price and 5% to floor price.
Shares of Union Bank of India rallied 5% on Wednesday morning after the state-run bank said its committee of directors have approved the raising of funds up to ₹3,000 crore via qualified institutions placement (QIP). At 11:30 am, the scrip was trading 4.89% higher at ₹148 apiece on NSE.
The indicative issue price is at ₹135.65, which is a discount of 3.9% to the lender's closing price and 5% to floor price.
Union Bank of India said the issue price will be determined by the PSU bank in consultation with the Book Running Lead Managers appointed for the QIP Issue.
"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, inter alia approved the raising of funds for an amount not exceeding ₹3,000 crore through the issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals, as applicable," according to a stock exchange filing.
This is the second instance of fund raising by the bank in six months. Earlier in August last year, the lender raised up to ₹5,000 crore through QIP. If you had invested in the previous QIP, you would be gaining 63% on your investment.
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