Know more Updates about UCO Bank, Central Bank of India, Punjab & Sind Bank launch QIPs
Shares of UCO Bank, Central Bank of India, and Punjab & Sind Bank were all in the limelight on Tuesday after they announced plans to raise capital through a Qualified Institutional Placement (QIP). Punjab & Sind Bank shares rose 13.25% to ₹50.49, while UCO Bank shares fell 2.43% to ₹37.31. Central Bank of India shares dropped 2.66% to ₹45.60 on the BSE.
The boards of directors of these three public sector banks (PSBs) have approved the fundraising by issuing shares to institutional investors. The government has approved a ₹10,000 crore capital-raising exercise through an offer for sale (OFS) for five PSU banks to meet minimum public ownership requirements.
UCO Bank’s QIP:
UCO Bank started its QIP procedure on March 24 to raise ₹2,000 crore. The government is set to cut its interest in the bank by 3%, bringing it down from 95.39% now. UCO Bank’s QIP floor price is fixed at ₹36.07 per share.
Central Bank of India’s QIP:
The Central Bank of India, a state-owned entity, launched its QIP on March 24 after receiving the necessary permissions from its Board and shareholders. The bank has set a floor price of ₹42.62 per share, computed using the SEBI pricing mechanism.
Punjab and Sind Bank QIP:
Punjab & Sind Bank has set a floor price of ₹40.38 per share for its QIP, hoping to raise ₹2,000 crore. The bank has stated that it may give a discount of up to 5% off the floor price for the issue. These PSU banks’ QIP operations are part of a larger plan to improve their capital base while remaining compliant with regulatory shareholding requirements.
