Union Bank plans to raise Rs 3,000 cr, fixes floor price at Rs 142/share

State-owned Union Bank of India on Tuesday approved a Rs 3,000 crore share sale proposal to fund its business growth.

The Committee of Directors for Raising Capital Funds, in its meeting held on Tuesday, cleared the proposal for raising of funds for an amount not exceeding Rs 3,000 crore through the issue of equity shares via Qualified Institutions Placement (QIP), the bank said in a regulatory filing.

This is subject to the requisite regulatory or statutory approvals, it said.

The committee also approved the floor price of Rs 142.78 per equity share for the issue, it said.

The bank may offer a discount of not more than 5 per cent on the floor price to be decided in consultation with the book-running lead managers, it added.

The decision for allotment of shares to Qualified Institutional Buyers to be taken on February 23, 2024, by the Committee of Directors for Raising Capital Funds, it added.