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Union Bank prices equity share at Rs 86.55 for QIP; raises Rs 5,000 crore

Priced at 5% discount to floor price; another equity offering likely to reduce Govt stake further

Union Bank of India

Union Bank of India

Abhijit Lele Mumbai

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Public-sector lender Union Bank of India on Thursday priced its shares at Rs 86.55 per share to raise equity capital worth Rs 5,000 crore through Qualified Institutional Placement (QIP). 
This QIP issue would reduce government holding to about 77 per cent and provide growth capital for Mumbai-based lender. The issue price of Rs 86.55 per share was at 4.99 per cent discount to floor price of Rs 91.10 for each share. The state-owned lender in filing with BSE said its board on Thursday approved the issue price of Rs 86.55 per equity share of Rs 10.00 each. Thus, issue price includes a premium of Rs 76.55 per equity share. 
The share of the bank closed 1.13 per cent lower at Rs 91.29 per cent on BSE on Thursday. Foreign institutional investors, 
mutual funds, and insurance companies, including LIfe Insurance Corporation, participated in QIP offering, capital market sources said.

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First Published: Aug 24 2023 | 9:31 PM IST

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