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Thursday, February 25, 2010

United Bank of India IPO subscribed 11.24 times

The Rs 330 crore initial public offer (IPO) of state-run lender United Bank of India has received robust response from investors with the issue getting subscribed over 11 times till 1300 hrs on its last day today.

The public issue, which opened on February 23, received total bids for over 56.19 shares against five crore equities on offer, data till 1300 hrs with the National Stock Exchange shows.

Final figures of the issue would be available only after 1700 hrs.

The bank has fixed the issue price at Rs 60-66 per share and has also announced a five per cent discount for retail investors. United Bank will be able to raise Rs 330 crore at the upper band of price range.

At the end of second day, the offer was subscribed 2.65 times, with most of the bids coming from institutional buyers.

Post-issue, the government's stake in United Bank would come down to 84.2 per cent from the existing 100 per cent, resulting in a stake dilution of 15.8 per cent. The IPO closes today.

The bank would utilise the proceeds to expand its balance sheet and augment capital base.

SBI Capital Markets, Edelweiss Capital and Enam Securities are book running lead managers to the issue.

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