Union Bank QIP: Morgan Stanley, Societe Generale, and SBI Life Insurance are among those allotted shares!

Nifty PSU Bank

The Nifty PSU Bank index has surged at a velocity akin to that of light itself. In the current year, it has soared by an astounding 23.48%, with stocks from PSU Banks emerging as undeniable outperformers. Amidst this whirlwind, one stock stands out with a significant 9.18% weightage in the index – Union Bank of India.

Union Bank Business Mix

Union Bank of India boasts a global business mix totaling approximately Rs 20.68 trillion, with advances reaching Rs 8.96 trillion and deposits amounting to Rs 11.72 trillion. Its branch network commands nearly 30% share in rural areas, followed by semi-urban, metro, and urban regions.

Raising of Funds

In a recent development, the Committee of Directors for Raising Capital Funds of the Union Bank, in its meeting held on February 26, 2024, approved the allotment of 22,11,57,390 Equity Shares at a face value of Rs 10.00 each to eligible Qualified Institutional Buyers. These shares were priced at Rs 135.65 per Equity Share, inclusive of a premium of Rs 125.65 per Equity Share, after considering a discount of 4.9937%. The total aggregation amounted to Rs. 2999,99,99,953.50 (Rupees Two Thousand Nine Hundred Ninety Nine Crore Ninety Nine Lakh Ninety Nine Thousand Nine Hundred Fifty Three and Fifty Paise only), pursuant to the Issue in accordance with the SEBI ICDR Regulations.

Following the allotment, the paid-up equity share capital of the Bank has increased from Rs 7412.45 Crore, comprising of 7,41,24,48,217 Equity Shares to Rs 7633.60 Crore, comprising of 7,63,36,05,607 Equity Shares of face value of Rs 10.00 each.

List of Allottees:

Here is the list of allottees who have been allotted more than 5% of the equity shares offered in the QIP issue: [list of allottees goes here]

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.