This mid-size PSU bank gets the nod to raise Rs 10,100 crore!

Shares rise on getting approval to raise funds through various modes.

On April 26,2023 Union Bank of India received approval to raise Basel III compliant Additional Tier 1 (AT 1) Bonds and/or Tier 2 bonds (including foreign currency denominated AT1/Tier 2 Bonds) not exceeding Rs 2,100 crore within the overall limit of Rs 10,100 crore.

The bank has also received approval for raising equity capital not exceeding Rs 8,000 crore in tranches within the overall limit of Rs 10,100 crore, through Public Issue (i.e. Further Public Offer) and/or Rights Issue and/or Private Placements including Qualified Institutions Placements and/or Preferential Allotment or a combination thereof to any eligible institutions and/or through any other mode subject to the approval of Government of India, other regulatory authorities and approval of Shareholders of the Bank.

Union Bank of India is one of the largest government-owned banks in India. The Bank offers products and services in three categories - Deposits, Loans and Advances, and Remittances and Collections.

The scrip opened at Rs 73.60 and touched a high and low of Rs 75.15 and Rs 73.25 respectively. So far 7,69,728 shares were traded on the counter.

The BSE group 'A' stock of face value of Rs 10 has touched a 52-week high of Rs 96.40 and a 52-week low of Rs 33.55. 

The promoters holding in the company stood at 83.49 per cent, while Institutions and Non-Institutions held 9.95 per cent and 6.56 per cent respectively.