The Telegraph
Since 1st March, 1999
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Quiet debut for Union Bank scrip

Mumbai, Sept. 24: Union Bank of India (UBI) today made a quiet debut on the bourses, finishing with a modest premium of over 2 per cent at Rs 16.35 against its issue price of Rs 16 per share.

The closing, however, disappointed optimists who expected the scrip to settle at Rs 18-19 levels. The scrip, which was listed at Rs 17.50, saw over 20 lakh shares change hands within the first few minutes of trade.

Later, till the better part of the day, the stock hovered in the range of Rs 16.50 to Rs 17.50, touching an intra-day low of Rs 16.15. On the BSE today, the counter witnessed 8,204 trades with 71.51 lakh shares being transacted, resulting in a turnover of Rs 11.78 crore.

Union Bank recently came out with a public issue for 18 crore shares at a premium of Rs 6 per share, aggregating Rs 288 crore. Each of the over 3.62 lakh applicants who submitted valid applications were allotted shares. This included over 3.39 lakh applicants in the public issue category and 22,981 applications in the employee category.

After the issue, while the government will hold 60.85 per cent, individuals including employees will hold 31.29 per cent, corporates 4.30 per cent, banks, financial institutions, insurance companies 2.78 per cent and mutual funds will hold 0.78 per cent .

The bank’s deposits have increased at a compounded annual growth rate of 15 per cent and advances at 20 per cent for the last five years. It has a network of over 2,000 branches. For the financial year ended March 31, 2002, it reported a 102 per cent rise in net profit to Rs 314 crore.

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