According to a regulatory filing on August 21, the board of Union Bank of India has approved the funding of up to Rs 5,000 crore through a qualified institutional placement (QIP) and has fixed a floor price of Rs 91.10 per share.
The choice was made by the committee of directors for capital fund raising at Union Bank, which convened earlier in the day.
According to the exchange filing, the committee “approved the opening of the issue today, i.e. August 21, 2023,” and “approved the floor Price of Rs 91.10 per equity share.”
The panel approved the issuance of equity shares through qualified institutional placement for a sum “not exceeding Rs 5,000 crore, subject to the necessary regulatory/statutory approvals,” the state-run lender stated.
The committee will reconvene on August 24 to “consider and approve the issue price, including a discount, if any thereto” for the equity shares to be allocated to eligible institutional buyers, in accordance with the issue, according to another exchange filing by Union Bank.
The statement comes one month after Union Bank revealed that its standalone net profit for the first quarter of the current fiscal year increased by 107 percent year over year to Rs 3,236.44 crore. The lender’s net interest income rose 16.59 percent year over year to Rs 8,840 crore.
The lender also reported an improvement in asset quality, with a 288-bps reduction in the gross non-performing asset (NPA) ratio and a 173-bps decline in the net NPA ratio as compared to the same time last year.
On the BSE, Union Bank’s stock price at the end of the trading day on August 21 was Rs 91.80, 2.81 percent less than it had been at the previous day’s closing.
