Union Bank of India board approves raising up to Rs 8,100 cr

State-owned Union Bank of India (UBI) on Thursday said its board of directors has approved raising up to Rs 8,100 crore by issuing equity shares through various modes.

The board of directors, in its meeting held on May 26, considered and approved raising of equity capital not exceeding Rs 3,800 crore, within the overall limit of Rs 8,100 crore, the bank said in a regulatory filing.

Besides, the lender got the approval for raising of additional tier I (AT I) and/or tier II bonds not exceeding Rs 4,300 crore within the overall limit of Rs 8,100 crore, it said.

The equity funds are to be raised through various modes such as public issue of shares (follow on public offer) or rights issue or on a private placement basis.

Likewise, the funds to be raised by issuing bonds can be raised through issuance of green or foreign currency denominated AT I/II bonds.

UBI said it will seek approval from the shareholders for the proposed fund raising plan in its Annual General Meeting (AGM) scheduled for June 30.

Shares of the lender rose nearly 2 per cent to close at Rs 35.55 apiece on BSE.

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