United Bank of India to raise Rs. 3000 crore
The state-owned bank, United Bank of India announced, on Wednesday, that the Board of Directors of the bank has approved the proposal for raising funds aggregating up to Rs. 3000 crore.
In a filing to the exchanges, the bank mentioned that the Board of Directors, at the meeting held on Wednesday (September 18, 2019), have approved the creation, offering, issuance and allotment of equity shares of face value of Rs. 10 each to the President of India acting on behalf of the Central Government, any select person or group of persons including institutions like Life Insurance Corporation of India and / or any fund thereof, and such other institutions participating in the Preferential Issue, for an amount aggregating up to Rs. 3000 crore by way of preferential allotment under Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, subject to approval of the shareholders in an Extraordinary General Meeting or through Postal Ballot.
The board has also approved its merger with Oriental Bank of Commerce and Punjab National Bank and also its fund raising proposal.
In the filing to the exchanges, the lender also mentioned that the board has considered and accorded its "In-principle approval" for amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and commencement of the amalgamation process, subject to all applicable approvals.
On Thursday, shares of United Bank of India closed at Rs.9.18 as compared to the previous close of Rs. 9.32. The stock hit an intraday high of Rs. 9.34 and intraday low of 9.18.