Union Bank of India is set to make a major announcement on Wednesday that could impact investor interest.
The state-run bank is set to reveal the issue price for its ongoing qualified institutional placement (QIP) in a meeting scheduled for February 23.
This development comes after the bank had earlier indicated its intention to raise funds up to Rs 3,000 crore through the issuance of equity shares via QIP, as per its filing to the Bombay Stock Exchange (BSE).
The bank’s board had already taken steps towards this fundraising endeavour, including the adoption of a preliminary placement document and application form, along with the approval for commencing the QIP on February 20.
Union Bank had set a floor price of Rs 142.78 per equity share, with the stock having closed at Rs 141.10 on Tuesday, marking a marginal decline of 0.07 per cent.
According to Union Bank, the issue price will be determined through consultation with the Book Running Lead Managers appointed for the QIP Issue.
The bank clarified that the “Relevant Date” for this issue, as per SEBI regulations, is February 20, 2024, with the floor price set at Rs 142.78 per Equity Share. Additionally, as per SEBI regulations, the bank reserves the option to offer a discount of up to 5 per cent on the Floor Price for the Issue.
Source Agencies
