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UCO Bank opens QIP at ₹36.07 per share to raise ₹2,000 crore, aiming to reduce government stake by 3%. UCO Bank share price closed at ₹38.18 on NSE, gaining 1.2% on Monday, March 24, 2025.
UCO Bank has officially opened its qualified institutional placement (QIP) on Monday, March 24, 2025, with a floor price of ₹36.07 per share. This development follows a resolution passed on June 18, allowing the bank to offer a discount of up to 5% on the floor price if required. The primary objective of the QIP is to raise around ₹2,000 crore and reduce the government's shareholding in the bank by 3%. As of now, the government holds a substantial 95.39% stake in UCO Bank.
Shares of UCO Bank closed at ₹38.18 on the National Stock Exchange (NSE) on Monday, marking a 1.2% increase. The QIP price, when calculated with the maximum allowable 5% discount, stands at ₹34.27 per share, representing a 9.19% markdown from the NSE closing price of ₹37.74 on March 21. The capital raised through this QIP will further strengthen the bank’s financial position and aid in achieving long-term business goals.
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UCO Bank opened its QIP on March 24, 2025, at a floor price of ₹36.07 per share.
The QIP aims to raise approximately ₹2,000 crore.
The government’s shareholding in UCO Bank will reduce by 3%.
UCO Bank share price closed at ₹38.18 on NSE, gaining 1.2%.
Maximum discount allowed on QIP price is 5%, setting the minimum price at ₹34.27 per share.
Also read: Central Bank of India opens QIP at ₹42.62; shares gain 3.77%
UCO Bank's decision to open the QIP aligns with its strategy to improve capital adequacy and reduce the government's stake in the bank. The QIP floor price is set at ₹36.07 per share, with the option to offer a 5% discount if needed. The UCO Bank share price saw a modest rise of 1.2%, closing at ₹38.18 on the NSE. The bank's decision to reduce government shareholding by 3% marks a strategic move towards enhanced corporate governance.
Metric | Value | Change (%) |
Floor Price of QIP | ₹36.07 per share | - |
Maximum Discount (5%) Applied | ₹34.27 per share | -9.19% |
Government Stake Before QIP | 95.39% | -3% |
Capital to be Raised | ₹2,000 crore | - |
UCO Bank Share Price on NSE | ₹38.18 | +1.2% |
The opening of UCO Bank's QIP at a floor price of ₹36.07 per share demonstrates the bank's proactive approach towards capital enhancement and reducing government stake. With a target of raising ₹2,000 crore, the UCO Bank share price has shown a positive response on the NSE. As the QIP progresses, market participants will closely watch the final pricing and its impact on the bank's financial outlook.
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