United Bank of India IPO heavily bid

Issue subscribed nearly 27 times

The initial public offer (IPO) of state-run United Bank of India (UBI) received strong response from investors. The IPO was subscribed nearly 27 times by 15:00 IST on the last day of the issue today, 25 February 2010. The IPO got bids for 134.92 crore shares compared with 5 crore shares on offer. The price band for the IPO is Rs 60 to Rs Rs 66 per share. The bank is offering a discount of 5% to retail investors.

Domestic institutional investors (DIIs) have made a beeline for the UBI IPO. DIIs, excluding mutual funds, put in bids for 9.67 crore shares by the end of the second day of the issue on Wednesday, 24 February 2010. However, there was not a single bid from mutual funds. Foreign institutional investors (FIIs) put in bids for 2.09 crore shares.

The IPO comprises of a net issue of 4.75 crore equity shares of a face value of Rs 10 each to the public, and a reservation of 25 lakh equity shares for subscription by eligible employees.

United Bank of India (UBI) has its presence predominantly in the north and north-east India.