Union Bank of India to raise Rs 1,750 crore through QIP

State-owned Union Bank of India (UBI) said that the Committee of Directors on for Raising Capital Funds on Monday approved raising of Rs 1,750 crore through qualified institutional placement (QIP).

In a regulatory filing at BSE, the bank said, " The committee has approved the raising of funds for an amount not exceeding Rs 1,750 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals, as applicable."

The committee authorised the opening of the issue today, i.e. on May 17, 2021, said the lender.

Union Bank added that the committee has set the floor price of the QIP at Rs 35.60 per equity share. Pursuant to the SEBI ICDR Regulations, the Bank may offer a discount of not more than 5 per cent on the floor price so calculated for the issue.

Besides, the public sector bank informed that a meeting of the Committee of Directors for Raising Capital Funds is scheduled to be held on May 20, 2021, to consider and approve the issue price, including a discount, for the Equity Shares to be allotted to Qualified Institutional Buyers, pursuant to the issue.

The Issue Price will be determined by the Bank in consultation with the Book Running Lead Managers appointed for the QIP Issue.