UCO Bank, a public sector bank headquartered in Kolkata, has made qualified institutions placement (QIP) of 58,36,00,803 equity shares aggregating to ₹2,000 crore.
Luthra and Luthra Law Offices India's Capital Markets Team advised UCO Bank on the QIP.
The transaction team was led by Partner Akshit Kapoor and Managing Associate Kshitij Asthana.
Dentons Link Legal acted as a legal counsel to the book running lead managers to this QIP - IDBI Capital Market & Securities Limited, Anand Rathi Advisors Limited, Elara Capital (India) Private Limited, Emkay Global Financial Services Limited and Systematix Corporate Services Limited.
The transaction team consisted of Milind Jha (Partner), Shailender Sharma (Partner), Kunal Mehta (Senior Associate), Dewang Khandelwal (Senior Associate), Atrayei Ghosh (Associate), Madhuri Pilania (Associate) and Anmay Agarwal (Associate).
The shares were priced at ₹34.27. This QIP aimed to bolster the bank's capital base and meet SEBI's Minimum Public Shareholding (MPS) norms by reducing the government's stake. Key investors included LIC, NPS Trust, and ICICI Prudential Life Insurance. While the initial market reaction was positive, the stock later saw a significant decline.
The QIP's purpose was twofold: strengthening capital adequacy and achieving the required public shareholding. UCO Bank's financial performance in Q3 FY25 showed positive trends, including increased net interest income, non-interest income, and net profit.
The allotment increased the bank's paid-up equity share capital and outstanding shares, marking a significant step in its capital restructuring and compliance efforts.
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