IPO of United Bank of India got subscribed 2.65 times at the end of second day of issue, with most of the bids coming from institutional investors.
Though the public issue, through which the bank aims to raise up to Rs 330 crore, has not received good demand from retail investors till now, has got positive response from qualified institutional buyers.
In total, the issue received bids for 13.27 crore shares, against 5 crore equities on offer, thus being subscribed 2.65 times, as per data available with the National Stock Exchange.
At the end of second day, qualified institutional buyers, which includes foreign institutional investors, have made bids for 11.76 crore shares against 2.85 crore equities reserved for them, thereby getting subscribed 4.12 times.
However, in the retail individual investors category the issue got subscribed 70 per cent at the end of today's demand.
The bank has fixed the issue price at Rs 60-66 per share and has also announced a five per cent discount for retail investors. United Bank will be able to raise Rs 330 crore at the upper band of price range.
Post-issue, the government's stake in United Bank would come down to 84.2 per cent from the existing 100 per cent, resulting in a stake dilution of 15.8 per cent. The IPO closes on February 25.
The bank would utilise the proceeds to expand its balance sheet and augment capital base.
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