Capital gains for United Western

DALAL STREET SPIKES

The United Western Bank (UWB) stock witnessed a sharp surge after the bank approved a major capital raising programme. The stock closed 10.6 per cent higher backed by strong volumes of more than 1.9 lakh shares on BSE.

The bank board on Thursday approved a Rs 380 crore capital raising programme (Tier I and Tier II) for the next two years. In financial year 2006, the bank plans to come out with bonus-cum-rights issue followed by preferential allotment to a strategic partner either domestic or foreign.

In all, it proposes to raise Rs 255 crore in 2006. The balance Rs 125 crore would be raised in the financial year 2006-07 either by way of issue of depository receipts or by way of such other option as would be permitted including issue of preference shares subject to guidelines from the RBI. From a recent low of Rs 38.25 on March 29, 2005, the scrip jumped 36.4 per cent to Friday's close of Rs 52.20.