City Union Bank Ltd approves QIP of Equity Shares

Subsequent to the approval accorded by the Board of Directors of City Union Bank Ltd, at its meeting held on July 29, 2013 and the approval of the shareholders of the Bank by way of a special resolution dated August 30, 2013 for the QIP, the QIP Management Committee of the Bank has, at its meeting held on July 14, 2014 has passed resolutions in connection with the QIP.

The QIP committee authorized the opening of the Qualified Institutions Placement of equity shares of face value of Rs. 1 each (the "Equity Shares") by City Union Bank Limited (the "Bank") under Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the "SEBI Regulations") and Section 42 of the Companies Act, 2013 (including the rules made thereunder) to Qualified Institutional Buyers (the "QIBs") as defined under Regulation 2(l)(zd) of the SEBI Regulations (the "QIP"), on July 14, 2014. The committee also approved and adopted the preliminary placement document dated July 14, 2014, in connection with the QIP, (the "Preliminary Placement Document").

The 'Relevant Date' for this purpose, in terms of Regulation 81(c)(i) of the SEBI Regulations, is July 14, 2014 and accordingly the floor price in respect of the aforesaid QIP, based on the pricing formula as prescribed under Regulation 85(1) of the SEBI Regulations is Rs. 75.05 per Equity Share.

Shares of CITY UNION BANK LTD. was last trading in BSE at Rs.75 as compared to the previous close of Rs. 74.35. The total number of shares traded during the day was 85421 in over 885 trades.

The stock hit an intraday high of Rs. 76.1 and intraday low of 73.35. The net turnover during the day was Rs. 6391041.

Source : Equity Bulls

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