UCO Bank to raise about Rs 400 cr by selling shares to LIC

State-owned UCO Bank today said it will sell 6.08 crore share to LIC on preferential basis which may fetch about Rs 400 crore to the bank.
The board of the bank at its meeting has approved a proposal for issue of 6.08 crore shares of Rs 10 each to Life Insurance Corporation of India (LIC) on preferential basis at a price to be determined in accordance with Sebi regulation, UCO Bank said in a statement.
LIC currently holds 8.69 per cent stake in UCO Bank. Following the fresh investment, stake of LIC would further go up by more than 5 per cent.

At the current market price, the bank would raise about Rs 416 crore by allotting shares on preferential basis to LIC.
Shares of the bank closed at Rs 68.35 per unit, down 5.66 per cent on the BSE.