Union Bank of India share price jumps 7% on Rs 3000 crore QIP
Union Bank of India's share price jumped 7% to Rs 151 in Wednesday's trade on BSE after the state-owned bank approved a Rs 3,000 crore share sale proposal at a floor price of Rs 142.78 per share to fund its business growth.
The floor price is at a marginal premium compared to the previous day's closing price of Rs 141.1. The bank also announced the opening of the issue on February 20.
«The Committee of Directors for Raising Capital Funds, in its meeting held on Tuesday, cleared the proposal for raising of funds for an amount not exceeding Rs 3,000 crore through the issue of equity shares via Qualified Institutions Placement (QIP),» the bank said in a regulatory filing.
At 11.06 am, the stock was trading 4.9% higher at Rs 148 on BSE. The PSU lender delivered multibagger returns to its investors as it has rallied over 110% in the last one year, and nearly 250% in the past two years.
In Q3 FY24, Union Bank of India reported a 60% year-on-year (YoY) jump in net profit at Rs 3,590 crore. In the corresponding quarter last year, it posted a net profit of Rs 2,245 crore.
Its net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 6.3%, coming at Rs 9,168 crore against Rs 8,628 crore in the corresponding quarter of FY23.
As per Trendlyne data, the average target price of the stock is Rs 157, which shows an upside of 6% from the current market prices. The consensus recommendation from 9 analysts for the stock is
