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The board of directors of United Bank of India (UBI) on Friday proposed to issue equity shares on preferential basis to the LIC and the Union Government at a price of Rs 79.74 a share.
The UBI stock closed at Rs 74.55, up 0.13 per cent, on the BSE.
The bank said that it plans to issue 1.7 crore equity shares of Rs 10 each to LIC and 2.17 crore shares of Rs 10 each to the Government.
The preferential allotment to LIC would help the bank raise capital (Tier-I) worth Rs 135 crore and an additional Rs 173 crore from the Government, taking the total to Rs 308 crore.
The relevant date for the preferential allotment has been fixed for February 24, the bank said. The bank has called for an Extraordinary General Meeting (EGM) on March 27 to seek shareholders' approval on the proposal for the issue.
UCO Bank
Meanwhile, UCO Bank said in an announcement to the stock exchanges that it plans to convene an EGM on March 23, seeking shareholders' nod for the issuance of about 3.13 crore equity shares of Rs 10 each on preferential basis to the LIC.
The bank will also seek shareholders' nod for issuance of additional equity capital worth Rs 500 crore on preferential basis to the Government.
The notification, however, is silent on the price of the shares to be issued to the Government and LIC.
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