Kolkata-based nationalised bank United Bank of India on Tuesday launched initial public offer of five crore shares to raise up to Rs 330 crore.
The government is selling about 15.8% of its stake in the bank. The government ownership in UBI will fall to to 84.2% from post issue, which closes on February 25.
The bank has fixed a price band of Rs 60-66 a share for the IPO. Of the five crore shares, 4.75 crore would be the net issue to the public and the remaining 25 lakh would be reserved for employees. The retail investors would get a discount of 5% over the issue price. The bank would utilise the proceeds to expand its balance sheet and augment its capital base.
UBI and Punjab & Sind Bank are the only two unlisted state-owned. While the government listed 19 banks on the stock exchanges several years ago, UBI will get listed nearly 40 years after it was nationalised in 1969.