United Bank of India ipo details

United Bank of India

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.

Objects of the Issue:

1. To augment capital base to meet the future capital requirements arising out of the growth in their assets due to the growth of the Indian economy; and
2. For meeting the expenses of the Issue.

Issue Detail:

»» Issue Open: Feb 23, 2010 - Feb 25, 2010
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: 50,000,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 300.00 - 330.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 60 - Rs. 66 Per Equity Share
»» Market Lot: 100 Shares
»» Minimum Order Quantity: 100 Shares
»» Listing At: BSE, NSE