Bangalore: United Bank of India (UBI), one of the few unlisted state-run lenders, announced that it would muster up to Rs.500 crore by diluting 15 percent of the government's equity in an IPO by January 2010.
Satish C Gupta, Chairman and MD, UBI said, "We have sought the formal approval for IPO by the government. We would file draft red herring prospectus with the Securities and Exchange Board of India (SEBI) sometime in October after our accounts for the period till September 30, 2009 are audited."
Earlier, the government approved capital restructuring of the bank, which would reduce paid up capital in the bank from the current Rs.1,532 crore to Rs.266 crore. This would enable the bank to get better pricing for its IPO. Face value of the total equity offloaded is likely to be Rs.50 crore, which means that Rs.400 crore to Rs.450 crore will be the total premium in the IPO.
The government would offload 15 percent of its equity in the bank. UBI is the one of the few nationalized banks where the government holds the entire 100 percent equity. The other lender is Punjab and Sind Bank.
Satish C Gupta, Chairman and MD, UBI said, "We have sought the formal approval for IPO by the government. We would file draft red herring prospectus with the Securities and Exchange Board of India (SEBI) sometime in October after our accounts for the period till September 30, 2009 are audited."
Earlier, the government approved capital restructuring of the bank, which would reduce paid up capital in the bank from the current Rs.1,532 crore to Rs.266 crore. This would enable the bank to get better pricing for its IPO. Face value of the total equity offloaded is likely to be Rs.50 crore, which means that Rs.400 crore to Rs.450 crore will be the total premium in the IPO.
The government would offload 15 percent of its equity in the bank. UBI is the one of the few nationalized banks where the government holds the entire 100 percent equity. The other lender is Punjab and Sind Bank.
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