UBI closes 4% higher on Day 1

State-run United Bank of India on Thursday made an impressive debut on the exchanges by closing 4 per cent higher than its issue price.

The scrip closed at Rs 68.80, up by 4 per cent over the issue price of Rs 66, on the Bombay Stock Exchange (BSE). The shares listed at Rs 77 on BSE.

On the National Stock Exchange, the stock settled at Rs 68.75, up 4 per cent.

“The bank listed at a decent premium on both the bourses on the back of positive momentum in the market. The stock later saw some profit-booking but was able to settle in the positive zone,” SMC Global Vice-President Rajesh Jain said.

A total of 8.34 crore shares of United Bank of India were traded on the bourses.

Last month, the initial public offer of the bank got a stupendous response with the issue getting subscribed nearly 33 times on huge demand from retail investors. The bank had raised Rs 330 crore by selling 50 million shares.

The government divested 15.8 per cent stake in the lender through the share sale. It holds 84.2 per cent stake in the bank at present.