Union Bank of India share price jumps 7% on ₹3,000 crore QIP announcement; rallies 101% in last 1 year
Union Bank of India share price jumped almost 7 percent on Wednesday, February 21, after the PSU lender announced its plans to raise ₹3,000 crore through a qualified institutional placement (QIP), with a floor price set at ₹142.78 per share. "We wish to inform you that the Committee of Directors for Raising Capital Funds (“Committee") has at its meeting held today i.e. February 20, 2024, approved the raising of funds for an amount not exceeding ₹3,000 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals," said the bank in a stock exchange filing.
The bank also informed that the opening date of the issue was February 20. The stock rose as much as 6.8 percent to its intraday high of ₹150.70. It is now just 3 percent away from its 52-week high of ₹155.30, hit on February 5, 2024, and has surged 150 percent from its 52-week low of ₹60.32, hit on March 28, 2023.
Meanwhile, in the last one year as well the stock has given multibagger returns, up almost 101 percent. Just in February so far, it has risen 5.6 percent, extending gains for the fourth straight month. Before this, it added 17.5 percent in January 2024, 10.4 percent in December 2023, and 6.15 percent in November 2023.
Union Bank of India recorded a stellar 60 percent year-on-year (YoY) surge in its net profit at ₹3,590 crore for the December quarter on the back of reduced provisioning and enhanced interest income. This marked a significant improvement from the net profit of ₹2,249 crore reported in the corresponding period of the previous year. The lender's total income for the third quarter of the ongoing fiscal rose almost 21 percent YoY to ₹29,137 crore versus ₹24,154 crore reported a
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