Mumbai: United Bank of India, one of the only two fully state-owned banks in the country, on Wednesday announced it will go in for an initial public offering (IPO) to dilute 15.8% stake. The IPO comes about three years after state-run Central Bank of India diluted its government stake through that route. The stake sale will mean Punjab and Sind Bank will be the only bank left with 100% government ownership.
For its public issue that opens on 23 February, Union Bank will issue 50 million shares in a price band of Rs60 to Rs66. At least 60% of the net issue will be allotted to qualified institutional buyers, including mutual funds, and at least 30% will be allotted to retail investors. The rest will be for non-institutional bidders. The bank will also offer a 5% discount to retail investors, said chairman and managing director Satish Gupta. The book runners for the IPO are SBI Capital Markets Ltd, Edelweiss Capital Ltd and Enam Securities Pvt. Ltd.