United Bank of India approves Preferential Allotment to Government of India

The Board of Directors of United Bank of India took note of the Letter No. F.No.11/7/2008-BOA dated February 15, 2011 received from Ministry of Finance, Government of India, and considered and approved the issue and allotment of equity shares of Rs 10/- each at such price as determined in accordance with the SEBI ICDR Regulations, 2009 aggregating up to Rs 308 Crore.

In terms of Regulation 76(1) of the (Issue of Capital & Disclosure Requirements) Regulations 2009 (SEBI ICDR Regulations) the issue price for the said Preferential Allotment works out to Rs.110.04 per share (Rupees One Hundred Ten and Paisa Four Only) including a premium of Rs 100.04/- per equity share, Accordingly the Bank proposes to issue and allot up to 279,89,821 equity shares to the Government of India on Preferential Basis.

The stock closed the day at Rs.94.30, down by Rs.1.85 or 1.92%. The stock hit an intraday high of Rs.96.95 and low of Rs.94.

The total traded quantity was 0.65 lakhs compared to 2 week average of 0.70 lakhs.

Source : Equity Bulls

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