"There would be further accretion of Rs 500 crore by March as part of capital infusion programme of the government," United Bank of India Executive Director T M Bhasin told reporters here.
The government assistance may be way of perpetual non-convertible bonds or innovative perpetual debt instrument, he said.
Speaking about IPO, which hits the market tomorrow, Bhasin said it has fixed the price band at Rs 60-66 for the public offer. At the upper end, the issue will fetch Rs 330 crore that the bank intends to use to augment capital base and propel its ongoing expansion plans.
The bank plans to sell 5 crore fresh shares with a face value of Rs 10 each in the market.
This will dilute 15.8 per cent of the government holding in the bank. Post-issue, the government will have 84.2 per cent shareholding in the bank.
The IPO, which will open on February 23 and close on February 25, has allocated not less than 30 per cent of the net issue to retail investors and 60 per cent to QIBs.
Content Guide
