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United Bank of India soars over 40% in three days

The stock has rallied 44% to Rs 61.75 from Rs 42.80 on NSE against 1% each rise in CNX Nifty and Bank Nifty.

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SI Reporter Mumbai
Last Updated : Jul 04 2014 | 10:21 AM IST
United Bank of India has soared 19% to Rs 61.75, extending its past two day’s rally on back of heavy volumes.

At 1005 hours, a combined 14.28 million shares representing 2.6% of total equity of the bank changed hands against an average sub 3 million shares that were traded daily in past two weeks.

Shares in state-owned lender have rallied 44% from Rs 42.80 in past three trading sessions on National Stock Exchange. The benchmark CNX Nifty and the banking sector index Bank Nifty has gained nearly 1% each during the same period.

The Kolkata-based lender is planning to raise around Rs 1,600 crore and already got shareholders nod for this proposed capital raising exercise.

United Bank of India is propose to raise up to Rs 1,000 crore either by second public issue or rights issue of shares or by placement of shares to qualified institutional investors.

It may also raise up to Rs 300 crore of fresh equity from Life Insurance Corporation of India and another Rs 275 crore from the government by converting existing perpetual non cumulative preference shares (PNCPS).
 

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First Published: Jul 04 2014 | 10:18 AM IST

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