UNITED BANK FIXES IPO PRICE BAND AT RS.60-66

United Bank of India (UBI) will raise between Rs 330 crore and Rs 350 crore from its initial public offering which will open on February 23. Through the IPO, the Government will dilute 15.8 per cent stake in the bank and will hold 82.2 per cent post the issue.



According to Mr. Satish C. Gupta, Chairman and Managing Director, United Bank of India, the indicative price band for the 5-crore shares IPO is between Rs 60-66 a share and the shares will be listed on both the BSE and NSE.


Of the total shares, retail investors would be allocated 30 per cent and the bank will be giving a rebate of 5 per cent to the retail participants. Non-institutional investors have been allotted 10 per cent of the shares and Qualified Institutional Buyers 60 per cent.


The funds from the IPO will be used for augmentation of the bank's capital base.


UBI's issue has been given an IPO grade of 4 by CARE indicating above average fundamentals and ICRA rated the issue as grade 3 indicating average fundamentals.


The book running lead managers to the issue are SBI Capital Markets, Edelweiss Capital and Enam Securities.


UBI's IPO will be the first PSU bank offering after Central Bank's Rs 816-crore issue in July 2007.


Source: http://www.thehindubusinessline.com/2010/02/18/stories/2010021851601600.htm


* After UBI's issue, the only PSB that has yet to come out with an IPO is Punjab & Sindh Bank.