UBI IPO to open on 23 Feb in Rs60-66 price band

United Bank of India will price its forthcoming public issue in the price band of Rs60-66 according to indications from the PSU lender. The issue aims to raise around Rs350 crore through sale of 5-crore equity shares.

Government equity in the bank will be down to 84.2 per cent from the 100 per cent ownership as of now post the public issue. The bank would offer shares discounted at 5 per cent at the cut-off price.

The issue is to open on 23 February and close on 25 February and according to S C Gupta, United Bank of India CMD, the band of Rs60-66 was only a tentative band and the final band would be announced just two days prior to the date the issue opened for subscription.

United Bank of India is among the only two nationalised banks that had not gone for public issue. The other bank that is wholly owned by government is Punjab & Sind Bank.

The bank has reserved 5 per cent or 25 lakh shares for its employees and 60 per cent of the net issue will be allocated to qualified institutional buyers (QIB) with 5 per cent of this being again allocated to mutual funds.

According to analysts, the Kolkata-based lender intends to use the proceeds to broaden the capital base and drive its expansion plans.