Union Bank shares climb 7% after QIP launch. Key details

Union Bank of India shares climbed nearly 7 per cent in Wednesday's trade as the PSU bank launched its Rs 3,000 crore qualified institutional placement, and suggested it would announce the QIP issue price on February 23. The floor price of the issue was set at Rs 142.78 per share, which was higher than Union Bank's Tueday's closing price of Rs 141.10.

Following the development, the Union Bank stock rose 6.66 per cent to hit a high of Rs 150.50 on BSE. The multibagger stock is up 22.35 per cent year-to-date and 112.66 per cent in the last one year.

The Union Bank board adopted the preliminary placement document and application form, and approved the opening of the QIP on February 20.  Union Bank said the issue price will be determined by the PSU bank in consultation with the Book Running Lead Managers appointed for the QIP Issue.

"We further wish to inform you that the ‘Relevant Date’ for the purpose of the Issue, in terms of the Regulation 171(b)(i) of the SEBI ICDR Regulations, is February 20, 2024 and accordingly the Floor Price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹ 142.78 per Equity Share. Pursuant to the SEBI ICDR Regulations, the bank may offer a discount of not more than 5% on the Floor Price so calculated for the Issue," Union Bank said.

"We further wish to inform you that the ‘Relevant Date’ for the purpose of the Issue, in terms of the Regulation 171(b)(i) of the SEBI ICDR Regulations, is February 20, 2024 and accordingly the Floor Price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹ 142.78 per Equity Share. Pursuant to the SEBI ICDR Regulations, the bank may offer a discount of not more than 5% on the Floor Price so calculated for the Issue," Union Bank said.

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