Six institutional investors allotted more than 5% of equity shares offered in Union Bank’s ₹3,000 cr QIP issue

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Morgan Stanley Asia (Singapore) Pte., Societe Generale, HDFC Life Insurance, BNP Paribas Financial Markets, SBI Life Insurance, and Sundaram Mutual Fund have been allotted more than 5 per cent of the equity shares offered in Union Bank of India’s ₹3,000 crore Qualified Institutional Placement (QIP) issue.

The public sector bank allotted 22.11 crore equity shares of face value ₹10 each to eligible Qualified Institutional Buyers (QIBs) at the issue price of ₹135.65 per equity share (including a premium of ₹125.65). The issue price is at a 4.9937 per cent discount to the floor price of ₹142.78 per equity share. The issue opened on February 20, 2024 and closed on February 23, 2024.

Morgan Stanley Asia (Singapore) Pte got the highest allotment of 9.56 per cent of the equity shares offered in UBI’s QIP issue, followed by Societe Generale (8.99 per cent), HDFC Life Insurance (8.45 per cent), BNP Paribas Financial Markets (8.12 per cent), SBI Life Insurance (7.04 per cent), and Sundaram Mutual Fund (5.63 per cent), per the Bank’s regulatory filing.

One of the largest

A Manimekhalai, MD & CEO, noted that UBI concluded one of the largest equity capital raising issue in the public sector banking space in the recent past.

The Bank raised ₹8,000 crore by way of QIPs during the year, which is the highest in the history of the bank and one of the highest in the history of public sector banks in a financial year, in recent years, she said. “The QIP proceeds will augment the capital base and help us pursue growth opportunities,” Manimekhalai said.

As on December 31, 2023, public shareholding in Union Bank of India stood at 23.01 per cent. After the QIP issue, public shareholding in the bank increased to 25.24 per cent. Consequently, the shareholding of the Indian government has come down to 74.76 per cent from 76.99 per cent earlier.

With this QIP issue, the bank has complied with the SEBI regulation that requires listed entities to maintain a minimum public shareholding of at least 25 per cent.