Home Market Union Bank of India raises Rs 426 crore vis ESPS, falls short...

Union Bank of India raises Rs 426 crore vis ESPS, falls short of target

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Union Bank of India has raised Rs 426 crore from its share sales to employees against a target of about Rs 470 crore.

The state-owned bank has allotted 7.29 crore equity shares at Rs 58.49 a share to employees under the Employees Stock Purchase Scheme (ESPS), it said Thursday in a regulatory filing to stock exchanges.

It had put eight crore equity shares of face value Rs 10 on sale.

ESPS has been one of the prevalent ways of raising capital over the past six months as part of their effort in bringing down government holding below 75%.

However, promoter holding has not been a compelling issue was not for Union Bank as the government held 67.43% as on December last year.

The bank has received Rs 4112 crore by placing shares at Rs 78.84 to the government on preferential basis as part of the bank recapitalisation plan. This will raise the government holding but this may not breach the 75% mark.

Securities & Exchange Board of India mandates every listed company to have minimum 25% public shareholding.

Canara Bank had offered personal loans to Union Bank employees during share sale exercise.

Banks which issued ESPS so far havRead More – Source