City Union Bank gains on strong response to share sale

Reuters Market Eye - Shares in City Union Bank Ltd rise on strong response to its share sale to raise up to 3.50 billion rupees ($58.2 million).

City Union Bank on Monday evening launched a share sale for institutional investors to raise 2.50-3.50 billion rupees, term sheet showed.

Floor price for the share sale had been fixed at 75.05 rupees a share, the lender said in a statement.

The bank's share sale has been oversubscribed by nearly 2.5 times, people involved in the process said.

The lender's shares were up nearly 1 percent to 75.15 rupees at 10:02 a.m.

(Reporting by Abhishek Vishnoi)