Union Bank of India announces QIP worth Rs 3,000 crore

Union Bank of India

PSU lender Union Bank of India announced Rs 3,000-crore qualified institutional placement (QIP) with a floor price of Rs 142.78/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 Rs 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.

In comparison to the Union Bank of India‘s scrip’s closing price of Rs 141.2 on the BSE on Tuesday, the floor price is at a slight premium. Additionally, the bank declared that the issue would open on February 20.

Union Bank of India’s scrip has a 52-week high of Rs 155.35 and a 52-week low of Rs 60.35.

Due to lesser provisioning and higher interest revenue, Union Bank of India reported a 60% increase in net profit for the December quarter, coming in at Rs 3,590 crore. In the same period last year, the bank made a net profit of Rs 2,249 crore, according to a regulatory filing from Union Bank of India.

The PSU bank was just included in the MSCI Global Standard index in the quarterly review for February 2024. In the three months prior, the bank had increased by 21% to be included in the list.

Also Read | Union Bank of India to raise up to Rs 5,000 crore through qualified institutional placement

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