By PTI Mar 18 2010 , Mumbai
State-run United Bank of India (UBI) today listed
with a premium of 17 per
cent on the BSE, over its issue price.
Shares of the bank opened at Rs 77, also its early
morning high on the Bombay Stock Exchange, over its
issue price of Rs 66.
"Fuelled by positive sentiments, the stock listed with
a premium on the bourses. However, the it will see some
profit booking later and will perform as per the other banking
stocks listed," SMC Global Vice-President Rajesh Jain said.
On the National Stock Exchange, the stock listed at Rs 74.90,
up 13.48 per cent.
A total of 1.79 crore shares of UBI changed hands on the bourses
in the early morning trade. The company has offered 31.64 crore
shares for the public subscription.
With the listing, the government stake in United Bank has now
come down to 84.2 per cent from the earlier 100 per cent,
resulting in stake dilution of 15.8 per cent.
The bank will utilise the IPO proceeds to expand its balance
sheet and augment capital base.
Last month, the initial public offer (IPO) of the state-run
United Bank of India (UBI) got a stupendous response with the
issue getting subscribed nearly 33 times on huge
demand by retail investors.
Source: Financial Chronicle
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