Informist, Thursday, Mar 23, 2023
--To review QIP plan after Jan-Mar earnings
By Richard Fargose
MUMBAI - Union Bank of India has put on hold its plans to raise funds through qualified institutional placements in Jan-Mar due to unfavourable market conditions, said a senior bank official.
"Earlier, we were aiming to complete it (QIP) in this quarter, but domestically and globally equity markets were very volatile and conditions were not favourable to go ahead with it," said a bank official.
Stock markets in India have fallen sharply since late January due to the meltdown in Adani group shares following the Hindenburg report and banking crisis in the US. The board of the bank in January approved a 38-bln-rupee institutional placement by diluting government's stake.
The government currently has an 83.5% stake in the bank. The official said the board of the bank will review the capital raising plans in Apr-May after the Jan-Mar earnings.
"We are not in a hurry to raise capital, and we have time till August 2024 to meet minimum public shareholding norm," the source said.
According to the Securities and Exchange Board of India's norms, at least 25% of the outstanding equity of listed companies must be held by the public.
The official said though the government has set August 2024 as deadline for state-owned banks to meet the minimum public shareholding norm, the deadline has been extended many times in the past.
At 1527 IST, the bank shares were down 1.9% at 67.70 rupees on National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
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Informist, Thursday, Mar 23, 2023
--To review QIP plan after Jan-Mar earnings
By Richard Fargose
MUMBAI - Union Bank of India has put on hold its plans to raise funds through qualified institutional placements in Jan-Mar due to unfavourable market conditions, said a senior bank official.
"Earlier, we were aiming to complete it (QIP) in this quarter, but domestically and globally equity markets were very volatile and conditions were not favourable to go ahead with it," said a bank official.
Stock markets in India have fallen sharply since late January due to the meltdown in Adani group shares following the Hindenburg report and banking crisis in the US. The board of the bank in January approved a 38-bln-rupee institutional placement by diluting government's stake.
The government currently has an 83.5% stake in the bank. The official said the board of the bank will review the capital raising plans in Apr-May after the Jan-Mar earnings.
"We are not in a hurry to raise capital, and we have time till August 2024 to meet minimum public shareholding norm," the source said.
According to the Securities and Exchange Board of India's norms, at least 25% of the outstanding equity of listed companies must be held by the public.
The official said though the government has set August 2024 as deadline for state-owned banks to meet the minimum public shareholding norm, the deadline has been extended many times in the past.
At 1527 IST, the bank shares were down 1.9% at 67.70 rupees on National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
