City Union Bank rises ahead of rights issue

The private sector lender has fixed November 23 as the record date for the purpose of 1:4 rights issue.

City Union Bank is trading higher by 4.4% at Rs 61.60 ahead of rights issue of equity shares. The private sector lender has fixed November 23 as the record date for the purpose of rights issue.

“The board of directors of the bank at its meeting held on November 3, decided to fix the issue price at Rs 20 per share of Re 1 face value. The existing shareholders will be offered equity shares in the ratio of one share for every four equity shares held by them,” City Union Bank said in a statement.

The bank will issue 102 million equity shares, out of which 26.5 million shares will be reserved for employees, it added.

 

The stock opened at Rs 59.35 and hit lifetime high of Rs 62.40 on the BSE. The counter have seen huge trading activities with a combined 3.02 million shares already changed hands so far against an average 1.5 million shares that were traded daily in past two weeks.