The UCO Bank is expecting to raise Rs 900-950 crore from follow-on-public offer after a rousing comeback in the stock market. The revival of the stock market has encouraged UCO bank authorities to revise estimates of premium for the issue from Rs 50 to over Rs 60 a share.
According to UCO Bank chairman and managing director S K Goel, “As per the current market conditions, getting a premium of Rs 60 will not be a problem. A premium of around Rs 50 a share was expected earlier,” He added that the final pricing would be made later after consulting with the merchant bankers. According to sources, the issue is expected to hit the capital market in January.
The bank has been expecting better valuation with entry into insurance business which is likely to be in place soon. The bank is likely to use the book building route for the FPO rather than fixed pricing method.
UCO bank offers the full complement of loans including home loans and car loans under the names UCO Shelter and UCO car.