Aug 05, 2009, 09.08 AM IST

United Bank of India board clears IPO proposal

The United Bank of India�s Board has approved issuance of 5 crore shares of Rs 10 each at a premium, its Executive Director, Mr T.M.Bhasin, has said. The bank�s initial public offering (IPO) is slated to hit the market in the last week of December or in the first week of January 2010, reports The Hindu Business Line.

Source: The Hindu Business Line.

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United Bank of India board clears IPO proposal

The United Bank of India �s Board has approved issuance of 5 crore shares of Rs 10 each at a premium, its Executive Director, Mr T.M.Bhasin, has said. The bank�s initial public offering (IPO) is slated to hit the market in the last week of December or in the first week of January 2010.

�The bank�s board has a few days ago approved a proposal to issue 5 crore shares at a premium. We will now convey this decision of the Board to the Government and take the IPO process forward. The process of identification of merchant bankers for the IPO has started,� Mr Bhasin told Business Line.

After the capital restructuring, the paid-up capital of United Bank of India stands reduced to Rs 266 crore (from Rs 1,532 crore).

The bank is currently wholly-owned by the Union Government. Mr Bhasin also said that the restructuring of capital has increased the book value of the share to over Rs 90 per share, reports The Hindu Business Line.