United Bank of India approves Preferential Allotment of Equity Shares

United Bank of India proposes to issue 16578299 fresh equity shares of Rs. 10/- each to Life Insurance Corporation of India and 21671011 fresh equity shares of Rs. 10/- each to President of India at a price of Rs. 79.74 per equity share by way of Preferential Allotment as per Chapter VII of the SEBI (Issue of Capital & Disclosure Requirements) Regulations 2009 (ICDR).

Government vide its letter dated December 27, 2011 has communicated that the Bank's request to the Government to infuse Rs. 305 Crores in the Tier I capital of the Bank by way of preferential allotment of equity shares is being actively considered.

LICI has communicated its in-principle approval to the preferential allotment vide its letter dated February 23, 2012.

Shares shall be issued in dematerialised form and the entire share capital including the fresh issue shall be subject to lock-in as per the relevant provision of ICDR. The relevant date for the preferential allotment is February 24, 2012.

The Bank has called the Extra Ordinary General Meeting on March 27, 2012 for the purpose of this issue.

The United Bank of India stock closed the day at Rs.74.55, up by Rs.0.10 or 0.13%. The stock hit an intraday high of Rs.76.50 and low of Rs.73.80.

The total traded quantity was 0.51 lakhs compared to 2 week average of 2.79 lakhs.

Source : Equity Bulls

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