UBI IPO price band is likely to be Rs.60-66

 

by Harish Dhawan on Thu, 02/18/2010 -



UBI IPO price band is likely to be Rs.60-66Public
sector bank United Bank of India (UBI) clarified on
Thursday that the price band for its upcoming public
offer would have a price band of Rs. 60-66.

The bank is expecting to raise Rs. 350 crore from the
issue that would end up diluting government's stake
to 84.2 per cent from existing 100 per cent.

Scheduled to open on February 23 and close on
February 25, the issue offers five crore equity
shares for taking. Retail investors would be
issued at five per cent discount on the issue price.

However, as per the S C Gupta, CMD, United Bank
of India, the price band of Rs. 60-66 is just
tentative and the bank would announce its final
price band just two prior to the issue opens.

While five per cent of the issue is reserved for
the bank's employees, of the balance 60 per cent
is offered to qualified institutional buyers with
a five per cent reservation for the mutual funds.

 Retailinvestors have 28.5 per cent of the issue
reserved for them.

UnitedBank of India, apart from Punjab and Sind Bank,
was the only other bank in the country where the
government had 100 per cent ownership.