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City Union Bank to raise fund via sale of shares

Posted on Dec 05, 09:16PM | UNI

Private sector lender, City Union Bank plans to raise Rs 258 crore via sale of shares to investors on rights basis as well as issue of equity to its employees.

The bank would issue a total of 12.89 crore equity shares including 10.24 crore shares under the rights basis and the remaining 2.65 crore shares would be reserved for employees, as per the letter of offer filed by the bank with market regulator, Securities and Exchange Board of India (SEBI).

The issue comprises of issue of 10.24 crore equity shares to the equity shareholders of our banks on rights basis in the ratio of one equity share for every four equity shares aggregating upto Rs 204.98 crore and a reservation of upto 2.65 equity shares for the eligible employees of the bank aggregating upto Rs 53 crore.

Last month, City Union Bank had announced that its Board of directors has fixed the issue price for its proposed rights issue at Rs 20 per share.

The issue would open on December 17 and closes on December 31.

The proceeds of the issue would be used to strengthen the bank's capital base to support future growth, the release said.