UCO Bank has announced the commencement of its qualified institutional placement (QIP), setting the floor price at ₹36.07 per share, as disclosed to exchanges on Monday, March 24. This confirms a CNBC-TV18 newsbreak from Friday, March 21. The development is pursuant to a resolution passed on June 18, which allows the bank the flexibility to offer a discount of up to 5% on the floor price, if necessary.

The QIP aims to raise approximately ₹2,000 crore, with the primary objective of reducing the government’s shareholding in the bank by 3%. Currently, the government holds a 95.39% stake in UCO Bank.

During an earnings call following the October-December results, UCO Bank’s Managing Director and Chief Executive Officer, Ashwani Kumar, underscored the strategic importance of this initiative and indicated that the process is expected to be completed by the end of March.

On Monday, UCO Bank shares closed at ₹38.18 on the National Stock Exchange (NSE), marking a 1.2% increase.

Based on the NSE closing price of ₹37.74 on March 21, the QIP price, calculated at ₹34.27 per share after factoring in the maximum allowable 5% discount, represents a 9.19% markdown.