Union Bank of India shares gained nearly 2 per cent on the BSE in mid-morning trading after the state-owned lender proposed to raise up to ₹ 6,800 crore in the ongoing fiscal to fund its business growth. An extraordinary general meeting (EGM) will be held on December 30, 2020, to seek approval from the shareholders, Union Bank of India said in a regulatory filing to the stock exchanges. At 11:10 am, the shares of Union Bank were trading at ₹ 27.50, up 1.7 per cent on the BSE.
“The EGM is being convened to obtain shareholders’ approval for raising of equity capital upto Rs.6,800 crore (including premium, if any) during the FY 2020-21 by way of various modes such as public issue (i.e. follow-on public offer) and/or rights issue and/or private placements,” Union Bank of India said.