The bank had earlier said it was slated to hit the capital market by January-end to mop up about Rs 350-400 crore of fresh resources depending on the premium that would be decided by the merchant bankers. The bank proposes to issue five crore equity shares with a face value of Rs 10 each at a premium. Post IPO, the governments stake in the bank will decline to around 85%.
The government has already allowed UBI to recast its capital and reduce the paid-up component to Rs 266 crore from Rs 1,532 crore as a precursor to the IPO exercise. After the capital restructuring exercise, the book value of a UBI share will be Rs 104 and on this basis, the minimum premium could be Rs 60 per share over a face value of Rs 10 each, UBIs CMD SC Gupta said earlier.