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Union Bank of India on Thursday said it has raised Rs 2,000 crore via the qualified institutions placement (QIP) route by allotting 12.93 crore shares at Rs 154.65 per share (including premium of Rs.144.65 per share) to a host of investors such as Asset Management Companies, Insurance companies, and Foreign Institutional Investors.
The public sector bank said the QIP received encouraging response from market and was over-subscribed.
The QIP proceeds will augment Bank’s Common Equity Tier I ratio & overall Capital Adequacy ratio, each by about 70 basis points, according to a bank statement.
Rajkiran Rai G., Managing Director & Chief Executive Officer said “Union Bank of India received significant response of investors and QIP was oversubscribed. ...The amount raised shall augment our Capital adequacy and help in business expansion”.
The overall allocation is a mix of 10 foreign institutional investors and 24 domestic institutional investors, mostly long only investors, thereby also ensuring diversification of the shareholder base of Union Bank of India.
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