Private sector lender City Union Bank has raised Rs 350 crore ($58 million) via Qualified Institutional Placement (QIP). The issue was oversubscribed 3.4 times and comes amidst a bevy of institutional placements after the stock market revived with the new government taking over.
The bank raised the money to augment its capital base and leverage on the emerging business opportunity. The bank had issued shares at a minimum floor price of Rs 75 per piece.
Spark Capital acted as a book running lead manager to the issue. It also generated the highest quantum of allocable bids and secured highest allotments in the QIP book, which is close to 2.5 times the second-highest member of the syndicate.
City Union Bank has over 425 branches and 950 ATMs across 15 states and two union territories. It had about Rs 25,000 crore of total assets as of March 31, 2014.
Recently, PE firm ChrysCapital picked up over 4 per cent stake in the bank for Rs 140 crore. MCap Fund Advisors is also an existing investor with over 1 per cent stake in the bank.
City Union Bank posted a net profit of Rs 347 crore in financial year 2014 against Rs 322 crore for the year ended March 31, 2013. The bank’s FY14 net revenues stood at Rs 2,546 crore against Rs 2,189 crore the previous year.
(Edited by Joby Puthuparampil Johnson)
