UCO Bank shares dive 14% to hit 52-week low; analysts see more pain ahead

Shares of UCO Bank saw a sharp value erosion in Monday's trade, tumbling 13.54 per cent to hit a one-year low of Rs 30.90. The stock was last seen trading 11.92 per cent lower at Rs 31.48. At this price, it has slumped 34.50 per cent in six months.

Last week, the PSU lender informed bourses about the closure of its Qualified Institutional Placement (QIP) issue. It issued a majority of shares to Life Insurance Corporation of India (24.33 per cent), National Pension System (NPS) Trust (12.53 per cent), ICICI Prudential Life Insurance Company Ltd (12.17 per cent) and SBI Life Insurance Co Ltd (9.73 per cent).

"The bank has, at its meeting held today i.e. March 27, 2025, approved the allotment of 583,600,803 Equity Shares to eligible qualified institutional buyers at the issue price of Rs 34.27 per Equity Share, aggregating to Rs 19,99,99,99,518.81 under the SEBI ICDR Regulations," UCO Bank stated in an exchange filing.

"The QIP opened on March 24, 2025, and closed on March 27, 2025, and the same was intimated to you through our letters dated March 24, 2025, and closed on March 27, 2025, respectively. Pursuant to the allotment of Equity Shares in the QIP, the paid–up equity share capital of the Bank stands increased from Rs 1,19,55,95,81,760 comprising of 11,95,59,58,176 equity shares to Rs 1,25,39,55,89,790 comprising of 12,53,95,58,979 equity shares of face value of Rs 10 each," it added.

A few technical analysts suggested that the stock may remain 'bearish' in the near period. With that being said, support could be seen at Rs 30 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "UCO Bank is currently in a corrective phase, displaying inherent weakness. There is an intermediate resistance level at the bearish gap between Rs 34.40-35.40, followed by the Rs 37-38 zone. On the lower end, the stock appears weak, with support near Rs 30 level in the comparable period."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 30 and resistance at Rs 34.5. A decisive move above Rs 34.5 level may trigger a further upside towards Rs 37. The expected trading range will be between Rs 30 and Rs 37 for the short term."

Ameya Ranadive, CMT, CFTe & Senior Technical Analyst at StoxBox, said "UCO Bank is showing a persistent downtrend and emerging as a 'sell-on-rise' candidate. The price action suggests selling pressure at higher levels, with multiple resistance zones marked on charts. The technical indicators highlight a bearish move."

As of December 2024, the government held a 95.39 per cent stake in the PSU lender. The Nifty PSU Bank index slipped 0.31 per cent to 6,243.70 at the time of writing this story. Other major laggards include UCO Bank, Central Bank, Indian Overseas Bank, Indian Bank and Union Bank of India.