City Union Bank’s rights issue has closed on a positive note, with its offer being oversubscribed 1.75 times.
The bank decided to raise Rs 258 crore through the issue of rights shares. The issue was open during December 17-31.
CUB’s Chief Executive and Managing Director Dr N. Kamakodi told
Answering a query, he said “since the issue price was only a fraction of the market price, we expected a positive response. The provisional figures show that the issue has been oversubscribed 1.75 times.”
CUB’s board had fixed the issue price at Rs 20 a share (Re 1 towards face value and the balance towards premium).
It issued a total of 10.24 crore equity shares. This included a reservation of 2.65 crore shares for its employees, aggregating to Rs 53 cr.
The capital thus raised is expected to be utilised to meet the capital adequacy requirements arising out of growth in business as also towards complying with the proposed Basel III norms.
Eligible employees were earmarked 2.65 crore equity shares aggregating Rs 53 crore.
Edelweiss Financial Services was the lead manager to the issue and Karvy Computershare, registrar to the issue.
On Thursday, the shares of CUB closed flat at Rs 57.75 on the BSE.