Union Bank of India shares: QIP issue price to be revealed on Feb 23. Key details

Union Bank directors would meet on February 23 to consider and approve the issue price for its proposed qualified institutional placement (QIP), including a discount.

Shares of Union Bank of India will be in focus on Wednesday morning after the state-run bank said its committee of directors would meet on February 23 to consider and approve the issue price for its ongoing qualified institutional placement (QIP), including a discount. In an earlier filing to BSE, Union Bank had suggested that its board has approved the raising of funds for an amount not exceeding Rs 3,000 crore through issue of equity shares through QIP.

The Union Bank board adopted the preliminary placement document and application form, and approved the opening of the QIP on February 20. The PSU bank approved the floor price of Rs 142.78 per equity share. The stock had closed at Rs 141.10 on Tuesday, down 0.07 per cent.

Bank 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 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,” Union 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.

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.

With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/union-bank-of-india-shares-qip-issue-price-to-be-revealed-on-feb-23-key-details-418289-2024-02-21 and https://www.livemint.com/market/stock-market-news/union-bank-of-india-to-raise-3-000-crore-via-qip-floor-price-set-at-142-78-per-share-11708432801012.html