Union Bank of India rose 4.34% to Rs 181.50 at 14:35 IST on BSE after the bank said it will acquire stake of KBC Asset Management in its two joint ventures.
The announcement was made during trading hours today, 5 October 2015.
Meanwhile, the BSE Sensex was up 524.84 points, or 2%, to 26,745.79.
On BSE, so far 4.47 lakh shares were traded in the counter, compared with an average volume of 4.54 lakh shares in the past one quarter.
The stock hit a high of Rs 182.60 and a low of Rs 176 so far during the day. The stock hit a 52-week high of Rs 253.50 on 23 January 2015. The stock hit a 52-week low of Rs 129.80 on 8 May 2015.
The stock had outperformed the market over the past one month till 1 October 2015, rising 3.76% compared with 2.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 11.54% as against Sensex's 6.42% decline.
The large-cap company has an equity capital of Rs 635.78 crore. Face value per share is Rs 10.
Union Bank of India announced that its board on 26 August 2015 approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta and authorised initiation process of acquiring shareholding in both companies. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV.
Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.
After this acquisition, both Union KBC Asset Management and Union KBC Trustee Company will become wholly-owned subsidiaries of Union Bank of India, said the bank.
The bank said it will update the status of acquisition after the receipt of requisite approvals.
In a separate announcement on Saturday, 3 October 2015, Union Bank of India said that consequent to the receipt of capital funds from Government of India (GoI) to the tune of Rs 1079.99 crore, the bank on 30 September 2015 allotted 5.16 crore equity shares of Rs 10 each for cash at an issue price of Rs 209.05 per equity share on preferential basis to the GoI.
Union Bank of India's net profit fell 21.88% to Rs 518.78 crore on 5.79% growth in total income to Rs 9043.17 crore in Q1 June 2015 over Q1 June 2014.
The Government of India (GoI) held 60.47% in Union Bank of India (as per the shareholding pattern as on 30 June 2015).
Union Bank of India is one of largest state-owned banks in India. The bank's business segments include treasury operations, retail banking operations, corporate wholesale banking and other banking operations. They offer various types of deposits such as savings bank deposits, current deposits, current and savings account (CASA) deposits, and term deposits.
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