New Delhi: United Bank of India (UBI), one of the few unlisted state-run lenders, today said it would mobilise up to Rs500 crore by diluting 15% of the government’s equity in an IPO by January 2010.
“... we have sought the approval of the government, formal approval for IPO and that is being processed by the government... We are going to have issue in January only,” UBI chairman and MD Satish C Gupta told reporters here.
He said the bank would file draft red herring prospectus with market regulator Sebi sometime in October after its accounts for the period till September 30, 2009 are audited.
“We should be able to mobilise about Rs450 crore to Rs500 crore of funds,” he added.
Face value of the total equity offloaded will be Rs50 crore, the CMD said, meaning Rs400 crore to Rs450 crore may be the total premium in the IPO.
The government would offload 15% of its equity in the bank.
Earlier, the government approved capital restructuring of the bank, which would reduce paid up capital in the bank from the current Rs1,532 crore to Rs266 crore. This would enable the bank to get better pricing for its IPO.
UBI is the one of the few nationalised banks where the government holds the entire 100 per cent equity. The other lender is Punjab & Sind Bank.