Bookbuilding IPO | ₹325 Cr | Listed at BSE, NSE | Tue, Feb 23, 2010 - Thu, Feb 25, 2010
United Bank of India IPO is a book build issue of ₹325.15 crores. The issue is entirely a fresh issue of 5.00 crore shares of ₹325.15 crore.
United Bank of India IPO bidding started from Feb 23, 2010 and ended on Feb 25, 2010. The shares got listed on BSE, NSE on Mar 18, 2010.
United Bank of India IPO price band is set at ₹66 per share. The lot size for an application is 100. The minimum amount of investment required by an retail is ₹6,600 (100 shares) (based on upper price). The lot size investment for sNII is 31 lots (3,100 shares), amounting to ₹2,04,600, and for bNII, it is 152 lots (15,200 shares), amounting to ₹10,03,200.
The issue includes a reservation of up to 25,00,000 shares for employees offered at a discount of ₹3.00 to the issue price.
Edelweiss Financial Services Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.
Refer to United Bank of India IPO RHP for detailed Information.
IPO Open
Tue, Feb 23, 2010
IPO Close
Thu, Feb 25, 2010
Issue Price
₹66 per share
Market Cap (Pre-IPO)
₹2,088.44 Cr
| IPO Date | 23 to 25 Feb, 2010 |
| Listed on | Thu, Mar 18, 2010 |
| Face Value | ₹10 per share |
| Price Band | ₹60 to ₹66 |
| Issue Price | ₹66 per share |
| Lot Size | 100 Shares |
| Sale Type | Fresh capital only |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Retail Discount | Rs 3.00 per share |
| Employee Discount | ₹3.00 |
| Total Issue Size | 5,00,00,000 shares (agg. up to ₹325 Cr) |
| Fresh Issue | 5,00,00,000 shares (agg. up to ₹325 Cr) |
| Share Holding Pre Issue | 26,64,30,800 shares |
| Share Holding Post Issue | 31,64,30,800 shares |
| BSE Script Code / NSE Symbol | 533171 / UNITEDBNK |
| ISIN | INE695A01019 |
United Bank of India IPO comprises a total issue size of 5,00,00,000 shares. The net offer to the public is 4,75,00,000 shares, after excluding 25,00,000 shares under a preferential allotment. Of the Net offer 2,85,00,000 (60.00%) are allocated to QIB, 47,50,000 (10.00%) allocated to NII 1,42,50,000 (30.00%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue | Max Allottees |
|---|---|---|---|---|
| QIB Shares Offered | 2,85,00,000 | 60.00% | 57.00% | NA |
| NII (HNI) Shares Offered | 47,50,000 | 10.00% | 9.50% | NA |
| Retail Shares Offered | 1,42,50,000 | 30.00% | 28.50% | 1,42,500 |
| Preferential Reservations | ||||
| Employee Shares Offered | 25,00,000 | 5.00% | NA | |
| Total Shares Offered | 5,00,00,000 | 100.00% | 100.00% | |
Investors can bid for a minimum of 100 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 100 | ₹6,600 |
| Retail (Max) | 30 | 3,000 | ₹1,98,000 |
| S-HNI (Min) | 31 | 3,100 | ₹2,04,600 |
| S-HNI (Max) | 151 | 15,100 | ₹9,96,600 |
| B-HNI (Min) | 152 | 15,200 | ₹10,03,200 |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
United Bank of India is a public sector banking institution with branches in 28 States and in 4 Union Territories in India. The Bank is currently wholly-owned by the Government of India. As of December 18, 2009, they had 1,484 branches, 265 ATMs, 28 regional offices and 11 extension counters. United Bank is in the process of opening a representative office in Dhaka, Bangladesh. As of December 18, 2009, company had a workforce of 15,813 employees (including part-time employees). United Bank of India is one of the 14 banks which were nationalised on July 19, 1969.
United's business is principally divided into retail banking, corporate / wholesale banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance and mutual fund distribution, pension and tax collection services. Their retail banking business provides financial products and services to retail customers. United Bank provide loans and advances for housing, trade, automobiles, consumer durables, education, personal loans and other retail products. Also they provide commercial banking products and services to corporate customers, including mid-sized and small businesses and government entities. They offer direct financing to farmers for production and investment, as well as indirect financing for infrastructure development and credit to suppliers of agricultural inputs.
In Fiscal 2009, company made a net profit of Rs. 358.55 crore and had net assets of Rs. 61,500.78 crore and net worth of Rs. 2,537.83 crore. As of September 30, 2009, they made a net profit of Rs. 231.10 crore and had net assets of Rs. 71,952.25 crore and net worth of Rs. 2,769.87 crore. They have experienced growth in deposits and advances, with deposits growing at a compounded annual rate of 21.1% during the last five fiscal years and net advances growing at a compounded annual rate of 32.8% during the same period.
| Period Ended |
|---|
| Amount in ₹ Crore |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Augment our capital base to meet the future capital requirements arising out of the implementation of the Basel II standards and the growth in our assets, primarily our loan and investment portfolio due to the growth of the Indian economy | 312.14 |
| 2 | General Corporate Purposes | |
| 3 | Issue expenses | 12.84 |
| KPI | |
|---|---|
| RoNW | 14.13% |
| Pre IPO | Post IPO | |
|---|---|---|
| Promoter Holding | 100% | 84.2% |
| Market Cap | ₹2,088.44 Cr. |
The United Bank of India IPO is subscribed 33.38 times on February 25, 2010 7:00:00 PM (Day 3). The public issue subscribed 9.8 times in the retail category, 47.08 times in the QIB category, and 39.15 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 47.08 | 2,85,00,000 | |
| NII | 39.15 | 47,50,000 | |
| Retail | 9.8 | 1,42,50,000 | |
| Employee | 0.53 | 25,00,000 | |
| Total | 33.38 | 5,00,00,000 |
ICRA has assigned an IPO Grade 3 to United Bank of India IPO. This means as per ICRA, company has average fundamentals. ICRA assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Click here to download the ICRA IPO Grading Document for United Bank of India.
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Lead merchant bankers (including underwriting commission, brokerage and selling commission) | 0.19 |
| 2 | Registrars to the issue | 0.00 |
| 3 | Advisors | 0.07 |
| 4 | Printing and Stationary | 0.36 |
| 5 | Advertising and marketing expenses | 0.49 |
| 6 | Others: including Listing fee, Fee for IPO grading, Book Building Fee | 0.17 |
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹66.00 | ₹66.00 |
| Open | ₹77.00 | ₹74.90 |
| Low | ₹68.10 | ₹68.00 |
| High | ₹77.00 | ₹77.00 |
| Last Trade | ₹68.80 | ₹68.65 |
United Bank of India IPO is a main-board IPO of 5,00,00,000 equity shares of the face value of ₹10 aggregating up to ₹325 Crores. The issue is priced at ₹66 per share. The minimum order quantity is 100.
The IPO opens on Tue, Feb 23, 2010, and closes on Thu, Feb 25, 2010.
MUFG Intime India Pvt.Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in United Bank of India IPO using UPI as a payment gateway. Zerodha customers can apply in United Bank of India IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in United Bank of India IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The United Bank of India IPO opens on Tue, Feb 23, 2010 and closes on Thu, Feb 25, 2010.
United Bank of India IPO lot size is 100, and the minimum amount required for application is ₹6,600.
You can apply in United Bank of India IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for United Bank of India IPO will be done on [.], and the allotted shares will be credited to your demat account by . Check the United Bank of India IPO allotment status.
The United Bank of India IPO listing date is on Thu, Mar 18, 2010.
