United Bank raises Rs 300 cr by selling shares to LIC

State-owned United Bank of India today said it has raised Rs 300 crore by selling shares on preferential basis to LIC.

The bank has received Rs 299.99 crore from Life Insurance Corporation of India (LIC) and completed the preferential allotment of 8.45 crore shares, United Bank of India said in a statement.

The bank issued shares of face value of Rs 10 at a price of Rs 35.50 per share.

Following this, the government's share in the bank will come down to 82 per cent from the existing 89.47 per cent.

The shareholders of the bank had recently approved selling shares to LIC.

At present, LIC owns 2.72 per cent stake in United Bank of India.

The bank scripted a turnaround in the fourth quarter of 2013-14 by reporting an over 15-fold jump in net profit to Rs 469 crore on the back of cash recovery and upgradation of accounts.

In the January-March 2013 quarter, the bank had posted a profit of Rs 31 crore.