Union Bank of India's board approves raising ₹5,000 crore via QIP
Union Bank of India's board has approved raising of up to ₹5,000 crore through qualified institutional placement (QIP) and set a floor price of ₹91.10 per share, according to a regulatory filing today. The committee of directors of the public sector bank made the decision to raise capital funds during their meeting earlier in the day.
“We wish to inform you that the Committee of Directors on for Raising Capital Funds has at its meeting held today i.e. August 21, 2023, inter alia: approved the raising of funds for an amount not exceeding ₹5,000 crore through issue of equity shares through QIP subject to the requisite regulatory /statutory approvals, as applicable," the bank said in an exchange filing today.
Additionally, the public sector bank stated in an exchange filing that the Committee of Directors for Raising Capital Funds will meet on August 24, to discuss and approve the issue price, along with any applicable discount allowed by the SEBI ICDR Regulations, for the equity shares that will be distributed to qualified institutional buyers in accordance with the issue. “the Bank may offer a discount of not more than 5% on the Floor Price so calculated for the Issue," the bank said in an exchange filing.
The Bank will decide the Issue Price after consulting with the Book Running Lead Managers (BRLM) assigned to the QIP Issue. Union Bank of India announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 20, reporting a surge of 107 per cent in net profit to ₹3,236 crore on a standalone basis, compared to ₹1,558.5 crore in the corresponding period last year.
Read more on livemint.com
