Kolkata: United Bank of India is looking at the option of floating an initial public offer in six to nine months with an equity issue of Rs50-60 crore. The bank at a premium of Rs 100 a share would be able to mobilise around Rs 500-600 crore worth Tier I capital. The bank's paid-up equity capital will be reduced to Rs 266 crore.
The cabinet recently has approved the capital restructuring plan of the bank, which would include reduction in paid-up equity by over 80 per cent to improve its financial parameters. Moreover, the restructuring would enhance the bank's book value of shares to Rs 84-85 (up from Rs 14 at present) and it would further improve to Rs 100 after the IPO. The paid-up capital of the bank would reduce to Rs 266 crore (Rs 1,532 crore). The excess capital of Rs 1,266 crore would be infused into the bank's capital reserves.
| Source: Asian CERC |
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