United Bank of India on Wednesday said it had fixed the price band at Rs.60-66 of its initial public offering, scheduled to hit the market by the end of this month.
“We have set the price band at Rs.60-66. The bank has chalked out a road map to scale up operations on various fronts. From being an East-focussed bank, we want to expand operations pan-India,” bank Chairman and Managing Director S. C. Gupta told reporters here.
At the upper end of the price band, the issue would fetch Rs.330 crore. The Kolkata-based lender intended to use the proceeds to augment the capital base and propel its ongoing expansion plans. The bank plans to sell five crore shares with a face value of Rs.10 each in the market through the initial public offering (IPO).
This will dilute 15.8 per cent of the government holding in the bank. Post-issue, the government will have 84.2 per cent shareholding in the bank.
The IPO, which will open on February 23 and close on February 25, has allocated not less than 30 per cent of the net issue to retail investors and 60 per cent to QIBs.
Central Bank of India was the last public sector bank to get listed. With UBI going public, now Punjab & Sind Bank will be the sole state-owned unlisted bank.
