Union Bank of India to raise Rs 3500 crore through QIP next week

NEW DELHI: Union Bank of India, a public sector bank, is planning to raise funds through a qualified institutional placement (QIP) in the equity markets. According to sources, the bank aims to raise up to Rs 3500 crore through the QIP, which is expected to begin next week. Three investment bankers have been hired to handle the QIP, and the pricing is expected to be determined by next month.

The bank aims to reduce the government's current stake of 83% to 75% or lower through the QIP, by offering a stake of around 5% to 7% to the government. Additionally, the bank aims to increase the floating stock in the market, which is currently around 10%, through the QIP.

The bank's goal is to complete the QIP of Rs 3500 crore by the current fiscal year. Preparations have been made, and it remains to be seen if the bank will be able to complete the QIP in the current fiscal year.

Source: ET NOW