Union Bank Of India To Raise Up To Rs 6,000 Crore Via FPO Or Rights Issue
The board approved the mega fundraising plan in a meeting on Tuesday.
Union Bank of India will raise up to Rs 10,000 crore from the market through a mix of equity and debt. The lender plans to raise up to Rs 6,000 crore via multiple routes, including a follow-on public offer or rights issue.
The board approved the mega fundraising plan in a meeting on Tuesday, according to an exchange filing.
The Rs 6,000-crore equity fundraise will be carried through an FPO, or rights issue or private placements, including qualified institutional placement or preferential allotment or a combination of them. The proposal is subject to approval of the government, other regulatory authorities and shareholders, the bank said.
The debt issue will be raised through Basel III-compliant additional tier-1 bonds up to Rs 2,000 crore and tier-2 bonds up to Rs 2,000 crore, including foreign currency-denominated AT1/Tier-2 bonds.
In February, Morgan Stanley Asia, Societe Generale, and HDFC Life Insurance Co., among others, invested in Union Bank of India's QIP. The public sector lender managed to raise Rs 3,000 crore.
The bank also announced it will hold its 22nd annual general meeting on July 26.
Shares of Union Bank of India closed 0.68% lower at Rs 146.10 apiece after the announcement, as compared with a 0.04% decline in the benchmark BSE Sensex.
