United Bank of India approves bonds issue, rights issue

The Board of Directors of United Bank of India at its meeting held on November 21, 2012, has approved the issue & allotment of Unsecured Perpetual Tier - I Bonds (Series I) in the nature of Promissory Notes of Rs.10 lakhs each for cash at par up to a maximum amount of Rs.250 crore with a Green Shoe option up to a maximum of Rs.250 crore (Total amount not exceeding Rs.500 crore) through Private Placement.

The Board also approved proposal to create, issue & allot up to such numbers of Equity Shares of Rs.10/- each at a premium to be decided subsequently on 'Rights' basis to the existing shareholders of the Bank as on the Record Date to be fixed subsequently, as may be required to raise at least Rs.250 crore (Rupees Two Hundred and Fifty Crore) but not exceeding Rs. 300 crore (Rupees Three Hundred Crore) including premium.

The stock was trading at Rs.67.10, up by Rs.0.45 or 0.68%. The stock hit an intraday high of Rs.67.50 and low of Rs.66.80.

The total traded quantity was 0.23 lakhs compared to 2 week average of 0.78 lakhs.

Source : Equity Bulls

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