Union Bank Announces Fund-Raising Plans; Stock Declines Over 1%

A meeting of the committee of directors is scheduled to be held on May 20, 2021 to consider and approve the issue price for shares to be allotted to qualified institutional buyers

Union Bank has approved raising Rs 1,750 crore through qualified institutional placement at a floor price of Rs 35.60 per share. "The committee of the directors for raising capital funds at its meeting held on May 17, 2021, has approved raising of funds for an amount not exceeding Rs 1,750 crore through the issue of equity shares through qualified institutions placement (QIP)," Union Bank said in a regulatory filing to the stock exchanges. Union Bank may offer a discount of not exceeding 5 per cent on the floor price calculated for the issue, it added. Meanwhile, Union Bank has also announced that a meeting of the committee of directors is scheduled to be held on May 20, 2021 to consider and approve the issue price for equity shares to be allotted to qualified institutional buyers, pursuant to the issue.