The UCO Bank's board is meeting on March 19 to decide on final roadmap to raise capital and the bank is expected to hit the market in April-May.
After the EGM here today, UCO Bank chairman and managing director S K Goel said the board would take a final call on the method of fund raising including Follow on Public Offer (FPO), Qualified Institutional Placement (QIP) or combination of both depending on market condition.
"The government had given their nod for FPO. But, we may go for either FPO or a QIP or combination of both. The board will take a call at its meeting scheduled for March 19. The issue may hit the market in April-May," Goel said.
Alternate plans are on the bank’s board after lukewarm response from public offers of PSUs that hit the market recently.
Before the board meeting, Goel said he would be meeting a select group of shareholders and investors of the bank to get their views on the fund raising options.
If the board decided to go for a QIP, approval of the government would be sought, he said.
At the EGM shareholders gave approval for a follow-on offer of six crore shares. The government on January 19 conveyed its approval for raising equity capital by way of for six crore shares through book building process.
