Kolkata-based UCO Bank Ltd., a state-run lender, has postponed its planned international roadshows for a ₹2,000 crore Qualified Institutional Placement (QIP), which were originally scheduled for February 24 and 25. The roadshows, meant to attract foreign investors, were to be held in Hong Kong and Singapore. According to sources, the new dates are expected to be in the second week of March or later.
Uncertainty Over QIP Completion Before March-End
The postponement of these foreign investor meetings raises questions about whether UCO Bank can complete the QIP process before the end of March, as initially planned. However, a senior bank official, speaking on condition of anonymity, stated, “Our plan is to complete the QIP within this quarter. The domestic portion is already done, so we may still proceed in March.”
Government-Approved Fundraising Plan
The Indian government had earlier approved a ₹2,000 crore QIP plan for UCO Bank and other state-run banks with low public shareholding, to ensure compliance with SEBI’s minimum public shareholding norms. Following the completion of this QIP, the government’s stake in UCO Bank is expected to reduce by 3%, from the current 95.39%.
Strong Capital Position
At the end of December 2023, UCO Bank reported a Capital Adequacy Ratio (CRAR) of 16.25%, with a Tier-1 Capital of 14.17%. The bank’s management had earlier indicated that they intended to complete the fundraising exercise before the financial year ends.
Merchant Bankers and Market Performance
Several financial institutions, including IDBI Capital, Elara Capital, Emkay Global, Anand Rathi Investment Advisors, and Systematix, are acting as merchant bankers for the QIP.
Meanwhile, UCO Bank’s shares were trading 0.3% lower on Thursday at ₹37.85. The stock has fallen 40% from its peak of ₹62.
