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Union Bank of India to list on BSE on September 24

Union Bank of India, which went to the public recently to raise a sum of Rs 288 crore (Rs 2.88 billion), will be listed on the Bombay Stock Exchange on September 24.

''We are currently in the process of refunding the oversubscription portion of the intial public offer which would be completed by September 18,'' V Leeladhar, chairman, Union Bank of India said.

Leeladhar told UNI that the IPO had received overwhelming response from the public and was oversubscribed by 5.2 times.

He said that he would be comfortable if the bank share was listed at a higher level than the offering rate.

The bank made the public offer of 18 crore (180 million) shares on August 20 at Rs 6 premium on the face value of Rs 10 each per share.

The bank has capital adequacy ratio at 11 per cent and net NPAs at 6.26 per cent as on March 31, 2002.

UBI executive director M Venugopalan said the bank would utilise a majority of the IPO fund for meeting the growing demand for credit and funding its ambitious information technology program.

In next three years, it would spend about Rs 100 crore (Rs 1 billion) towards interconneting about 500 branches in 60 centres across the country, he said.

UBI has appointed Infosys and Wipro for supply of software and hardware respectively as per the business plan suggested by the consultancy firm KPMG.

UNI

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