Union Bank experienced a significant surge in its shares, jumping 6 percent during early trading on February 21. This rise comes hot on the heels of the PSU lender’s revelation of a Rs 3,000-crore qualified institutional placement (QIP) with a floor price set at Rs 142.78 per share.
The announced floor price, slightly above the previous closing price of Rs 141.10, has garnered investor attention, propelling the bank’s shares upwards. The opening of the issue was disclosed by the bank on February 20.
The bank, in a filing to the stock exchange, stated, “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 Rs 3,000 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals.”
By 11:15 am, the shares continued their upward trajectory, trading 4.82% higher at ₹147.90, reflecting investor optimism in response to the QIP announcement.
