New Delhi— Union Bank of India, a public sector lender, announced plans on Wednesday to raise up to ₹6,000 crore through a combination of equity and debt instruments. The decision was approved by the bank’s board and disclosed after market hours.
Of the total amount, up to ₹3,000 crore will be raised through equity instruments, which may include a Further Public Offer (FPO), rights issue, Qualified Institutional Placement (QIP), or a combination of these options. However, the equity fundraising is subject to shareholder approval.
The remaining ₹3,000 crore will be mobilized through debt instruments, including up to ₹2,000 crore via Basel III-compliant Additional Tier 1 (AT1) bonds and up to ₹1,000 crore through Tier 2 bonds.
On Wednesday, shares of Union Bank of India declined by 1.8%, closing at ₹144.40 on the Bombay Stock Exchange (BSE). Despite the dip, the stock has risen nearly 3% over the past month and over 21% in the last six months. Over a five-year period, the stock has surged by more than 327%, and currently trades at a price-to-earnings (P/E) ratio of 6.76.
In a separate development, the bank also disclosed earlier this week that the Central government has canceled the appointment of Pankaj Dwivedi as Executive Director. Dwivedi, who was appointed to the role in March 2023 for a three-year term, has immediately ceased to hold the position.
“The Central Government has canceled the appointment of Pankaj Dwivedi as Executive Director of Union Bank of India, and consequently, he ceases to hold the position with immediate effect,” the bank informed the stock exchanges on Monday.
Dwivedi has since returned to his previous role as General Manager at Punjab & Sind Bank. (Source: IANS)
