UBI gets SEBI approval for Rs 1,000-cr equity issue via QIP

Kolkata: State-owned lender United Bank of India on Wednesday said it has received market regulator SEBI's approval for issue of equity shares worth Rs 1,000 crore by way of institutional placement.

The Kolkata-headquartered bank had in January informed the bourses it planned to raise up to Rs 1,500 crore through qualified institutional placement (QIP), rights or public issue.

The lender had raised Rs 127.49 crore through sale of shares to qualified institutional investors in May.

The bank approved allotting over 5.49 crore shares to qualified institutional buyers at issue price of Rs 23.22 per share, it had said in a regulatory filing.

UBI had earlier said it plans to raise up to Rs 500 crore of Basel III-compliant listed additional tier-I debt instruments in the nature of bonds.

The lender would seek approval for this amount from its board, which is scheduled to meet on December 6.

At the same meeting, the bank also proposes to get the board's nod for issue of five crore equity shares in the form of ESOPs/ESPs in one or more tranches.