State-run UCO Bank Ltd.’s proposed ₹2,000 crore Qualified Institutional Placement (QIP) is unlikely to take place in the current financial year, people in the know told CNBC-TV18 on Thursday, February 27.

The state-run lender has deferred the foreign roadshows that were originally scheduled for February 24 and 25, sources said.

UCO Bank had planned roadshows across Hong Kong and Singapore and the new date for the roadshows is now said to be in the second week of March or later, sources added.

CNBC-TV18 is awaiting comments from UCO Bank on the story.
The government had recently approved a QIP plan worth ₹2,000 crore for UCO Bank and other state-run lenders with low public float, to comply with SEBI’s minimum public shareholding norms.

Post the successful completion of the QIP, the government stake in UCO Bank was expected to fall by 3% from the current 95.39% stake that it owns.

At the end of the December quarter, UCO Bank’s Capital Adequacy Ratio (CRAR) stood at 16.25% along with a Tier-1 Capital of 14.17%.

In an interaction with CNBC-TV18 post its December quarter results, UCO Bank’s management had mentioned that it intended to complete this fund raising exercise during this financial year itself.

IDBI Capital, Elara Capital, Emkay Global, Anand Rathi Investment Advisors and Systematix are merchant bankers to UCO Bank.

Shares of UCO Bank are currently trading 0.3% lower on Thursday at ₹37.85. The stock is down 40% from its peak of ₹62.