In one of the largest equity capital issuances by a public sector bank in recent history, Union Bank of India has successfully raised Rs. 50,000 million by issuing 577,700,751 equity shares to qualified institutional buyers at a price of Rs. 86.55 per share on August 25, 2023.
Saraf and Partners advised IIFL Securities Limited, BNP Paribas, ICICI Securities Limited, JM Financial Limited, Nuvama Wealth Management Limited (formerly Edelweiss Securities Limited), and YES Securities (India) Limited in relation to qualified institutions placement by Union Bank of India.
The Saraf and Partners team was led by Murtaza Zoomkawala, Partner, who was ably assisted by associates Ipsita Pallavi Sahoo, Rainika Malhotra, Yashvardhan Singh and Apoorva Tyagi.
With the completion of this deal, Saraf and Partners has successfully advised on the largest QIP in India over the last three years.
On the successful equity capital raise, A. Manimekhalai, Managing Director and CEO, Union Bank of India, said “The Bank has received a significant and encouraging response from the market and seen participation by a diversified investor base, which includes banks, asset management companies, insurance companies and foreign portfolio investors.” The QIP has been subscribed by 51 mostly long-only investors. The mix of 13 FPIs and 38 DIIs in the total allocation ensures that Union Bank of India’s shareholder base is diversified.
The QIP proceeds will be used to augment the Bank’s tier I capital and help the Bank pursue growth opportunities. The public shareholding of the Bank as of June 30, 2023 was 16.51%. Following the QIP, the public shareholding increased to 23.01% and the Government of India’s shareholding was reduced to 76.99%.