Union Bank Plans Ipo At Rs 6 Premium

The state-owned Union Bank of India has set a premium of Rs 6 a share on a share of Rs 10 for its proposed public issue. The Rs 288 crore issue is expected to open on August 19.

In its offer document filed with the Securities and Exchange Board of India, the bank has stated that it proposes to issue 18 crore equity shares of Rs 10 each for cash at a premium of Rs 5-8 a share (at an issue price of Rs 15-18 a share), aggregating Rs 270-324 crore.

The bank has already received an in-principle approval from the finance ministry to return capital worth Rs 58 crore. The bank proposes to complete the formalities related to the return of capital before the opening of the issue. Post-issue, the Centre