United Bank IPO opens for subscription, plans to raise Rs.330 crore

United Bank IPO opens for subscription, plans to raise Rs.330 croreUnited Bank of India's initial public offering (IPO) opened for subscriptions today. It is part of the bank's plan to raise Rs. 830 crore. Out of this, Rs. 500 crore will be through government aid, while the rest Rs. 330 crore is expected to come from the IPO.

While the government aid will be made available by the end of March, the IPO will be closed on Feb 25, 2010.

The state-run bank is going to issue 5 crore equity shares during the process of raising money from the market. Face value of each share, as per the bank, is going to be Rs. 10.

The price of the shares shall be determined through a 100 per cent book-building process.

However, the price band of the issue is between Rs. 60-66 per share. Retail investors will be given the shares at 5 per cent discount, while the other investors will have it at the market rate.

Talking about the IPO, CMD of United Bank, Satish Chander said that the money is being rasied in order to meet the growing credit demands. It is also going to fund the bank's expansion plans.