UCO Bank's Strategy to Meet MPS Norms Through Rs 2,000 Crore Share Sale

UCO Bank plans to raise up to Rs 2,000 crore through a share sale in the December quarter to meet Sebi's minimum public shareholding norms. This move aims to reduce the government's stake from 95.39% by 2-3%. Approval for the share sale is secured, and a road show will begin soon.

UCO Bank, a state-owned entity, has announced its intention to raise approximately Rs 2,000 crore through a share sale in the December quarter. This move is aimed at complying with the Securities and Exchange Board of India's (Sebi) minimum public shareholding (MPS) requirements.

The initiative involves a qualified institutional placement (QIP) of Rs 1,500-2,000 crore, which will help the bank meet the mandated 25% MPS. Currently, the Government of India's stake in the Kolkata-based bank stands at a significant 95.39% as of September 2024.

With approvals in place, UCO Bank plans to initiate a roadshow for the QIP soon. The government's holding is expected to decrease by 2-3% post-QIP, aligning with Sebi's requirement for public sector banks and financial institutions to adhere to MPS norms by August 2026.

(With inputs from agencies.)