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PRODUCT NOTE
United Bank of India
OPENS ON : 23/02/2010 CLOSES ON : 25/02/2010
Company Details:
  • United Bank of India (UBI) is a public sector bank wholly owned by GOI having predominant presence in north and north eastern states in India.

  • UBI has wide distribution network with presence through 1,505 branches and 270 ATMs in 28 States and in 4 Union Territories in India. UBI has one representative office in Bangladesh.

  • UBI has maintained high CASA deposits. AS of 30th Sep 09 the CASA deposits representing 33.96% of the total deposits consisted of savings deposit (26.41% of total) and current deposits (7.55% of total).

  • UBI has maintained a capital adequacy ratio13.28% and 12.93% in FY09 & half year ended 30th Sep 09 respectively.

  • The Net Interest Income has grown from Rs 905 cr in FY 08 to Rs 1,162 cr in FY 09 (growth of 28%) while the Net Profit has grown by 1.47 times.
  • The EPS of the bank stood at Rs 2.34 in FY 09 as against Rs 0.95 in FY 08. As of Sep-09 the EPS stood at Rs 8.67.
IPO GRADING
  • ICRA has assigned an IPO Grade 3 to the proposed IPO of United Bank of India (UBI), indicating average fundamentals.
  • CARE has assigned a IPO Grade 4 grading to the proposed Initial Public Offer (IPO) of United Bank of India (UBI).
  • Issue Details:
    Issue Size : 300-330 Crores
    Face value : Rs 10/- per equity share
    Price band : Rs.60 to Rs.66 (a discount Rs 3/-will be offered to retail)
    Lot Size : 100 Equity shares
    Exchanges : NSE & BSE
    Issue Type :

    100% Book Built issue IPO

     
    Book Running Lead Manager :
    1. ENAM Securities Pvt ltd,
    2. Edelweiss Capital.
    3. SBI Capital markets.
    Registrar
    1. Link In time India Pvt. Ltd ISSUE STRUCTURE
    ISSUE STRUCTURE
    S. No. Main Category No of equity shares reserved for the main category
    1. QIB 60% of the net issue size (At least 285,00,000 Equity shares)
    2. Non Institutional

    10% of the net issue size (Not less than 47,50,000 Equity Shares)

    3. Retail 30% of the net issue size ( Not less than 42,50,000 Equity Shares)
    Total Issue Size 1+2+3+ 50,000,000 Equity shares

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