United Bank files draft prospectus for its IPO

Written by Press Trust of India | Kolkata | Updated: Jan 1 2010, 03:36am hrs
United Bank of India on Wednesday filed its draft prospectus with market regulator Sebi for its initial public offering.

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.