After much talks and discussions, the Finance Ministry has given the nod to Kolkata-based United Bank of India to go public and hold its Initial Public Offering by January-end or early February,
2010.

With the offering, the bank is looking to raise nearly Rs. 350 to 400 crore worth of fresh funds, although much will depend on the premium, which has not been decided yet. As of now, the bank is looking to float 5 crore equity shares, at a face value of Rs. 10 per share.

UBI is currently 100% Government owned, but the state's share would be reduced to around 85% after the IPO.

"After the capital restructuring exercise, the book value of a UBI share will be Rs 104. On that basis, the minimum premium could be Rs 62 per share over a face value of Rs 10 each", said UBI's chairman and managing director SC Gupta.

By the end of the current fiscal year, UBI aims to achieve business worth a whopping Rs. 1,20,000 crore, and plans to take it to Rs. 2,00,000 crore by end of March 2010.

UBI had sent the Government its proposed IPO plans in December 2008.