United Bank of India is planning to come out with an initial public offer in six-to-nine months to raise around Rs.500 crores to Rs.600 crores by issuing 5-6 crore equity shares of Rs.10 each at a premium of Rs.100 per share, report media quoting a statement of T.M. Bhasin, Executive Director.

Bhasin added that the paid up equity capital of the bank would get reduced to Rs.266 crore, with the Cabinet having approved the bank's capital restructuring plan. Therefore, the bank will now commence the preparations for the IPO and will hit the market once it becomes beneficial.

Bhasin further said that the restructuring would enhance the book value of its shares to Rs.84 to Rs.85, and it would further improve to Rs.100 once the bank comes out with an IPO.

The bank said it would work out further details of the issue subsequently.

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