Union Bank of India, a leading Public Sector Undertaking (PSU) lender, announced its plans for a qualified institutional placement (QIP) amounting to Rs 3,000 crore. The bank’s share price surged by 6.8 percent to reach an intraday high of ₹150.70, bringing it within 3 percent of its 52-week high. This news comes as State-owned Union Bank of India aims to raise funds for its business growth. The QIP is being well-received by global funds, with BlackRock Inc, the world’s largest investment manager with close to $10 trillion in assets, and Hong Kong-based Segantii Capital among the notable investors. Union Bank’s stock has notably delivered impressive returns over the past year, with a rise of over 111 percent, outperforming the benchmark Nifty 50 index.

Summary:

• Union Bank of India plans a qualified institutional placement (QIP) of Rs 3,000 crore
• Share price of Union Bank rose 6.8 percent, nearing its 52-week high
• BlackRock Inc and Segantii Capital are among the global funds investing in Union Bank’s QIP
• Union Bank’s stock has delivered significant returns, rising over 111 percent in the last year
• The QIP aims to raise funds for Union Bank’s business growth

“The QIP announcement reflects the confidence of investors in Union Bank’s growth prospects and the positive sentiment in the market. Union Bank has been performing well, outperforming the benchmark index, which has attracted the attention of global investors such as BlackRock Inc and Segantii Capital.”

Union Bank of India also announced the opening date of the QIP, which is set for February 20. The floor price for the QIP has been fixed at Rs 142.78 per share, representing a marginal premium compared to the previous day’s closing price of Rs 141.1. The QIP will involve the sale of approximately 22.1 crore shares, equivalent to nearly a 3% stake in Union Bank of India held by the Central government.

Summary:

• Union Bank of India has disclosed the opening date of the QIP, set for February 20
• The floor price for the QIP is fixed at Rs 142.78 per share
• The QIP will involve the sale of approximately 22.1 crore shares, representing a 3% stake

“The announcement of the QIP’s opening date and floor price provides clarity to investors and market participants, setting the stage for potential transactions. The floor price indicates a minor premium and suggests confidence in the bank’s valuation and prospects.”

With the QIP set to raise Rs 3,000 crore, Union Bank of India aims to secure the necessary funds to support its business growth and expansion plans. The bank’s strong performance in the stock market, delivering multibagger returns of over 111% in the last year, demonstrates its ability to attract investors and deliver value. As Union Bank of India gains attention from global funds, the QIP is expected to be well-received, contributing to the bank’s strategic objectives.