United Bank of India has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India, say sources.

The bank had received the government’s approval for an initial public offering on December 4, 2009.

With the Government’s approval, United Bank is geared up to come out with its maiden public issue by January 2010, Chairman and Managing Director, Mr S C Gupta told a press conference on Dec 4.

“We plan to issue five crore shares at a face value of Rs 10 each and at a premium of about Rs 70-80 per share. We are hopeful of raising Rs 350-400 crore. The governments’ stake, which stands at 100%, will come down to about 84% after the IPO,” Mr Gupta said.

United Bank aims to achieve business of Rs 1,20,000 crore by the end of March 2010, and Rs 2,00,000 crore by March 2012, he added.

Source:  Moneycontrol