I have explained each pointer in the notes section given

below. Kindly, go through the ppt in the slide show view first and then in the current (normal) view or go to view notes page to gain a better understanding of my presentation. I have done this to avoid a lot of text on the slides, also to keep my matter to the point and to keep the number of slides to a minimum. Thank you

Special Studies in Finance: IPO of Union Bank of India

Slide 1

 Laksh Mirchandani Roll # 26

1. What is IPO? Meaning 2. When is it done? Time 3. Why is it done? Purpose 4. Where is it done? Place
Special Studies in Finance: IPO of Union Bank of India Slide 3

5. Who all are involved? Stakeholders 6. How is it done? Procedure

Special Studies in Finance: IPO of Union Bank of India

Slide 4

1. Largest public sector bank 2. Hit the capital market in Aug, 2002 3. IPO of 18 crore equity shares 4. Issued at premium price of Rs. 16 per share, aggregating Rs. 288 crore 5. Divestment 40% 6. Operating profit
2000 2001 Rs. 511 2001 - 2002 Rs. 869

7. Net profit almost double from 155 to 314 Cr.

Special Studies in Finance: IPO of Union Bank of India Slide 5

6. Lead managers
ICICI Securities DSP Merrill Lynch JP Morgan Stanley P.Ltd SBI Capital Securities Ltd

7. Reason for IPO

Capital adequacy ratio was 11% No government support

8. Plans for the money raised

To meet growing credit demands Information Technology (IT) program Interconnection of branches

Special Studies in Finance: IPO of Union Bank of India

Slide 6

9. Oversubscription
By five times

10. Response analysis

Best of 30% from Maharashtra (430 cr. approx.) From South (185 cr.) Backward areas of UP (80 cr.)

11. FPO Further Public Offering

Listed on BSE on Sept 24, 2002 Abundant response 70 lakh shares were traded on the very first day The opening price was 17.50 compared with the IPO of 16 at the NSE
Special Studies in Finance: IPO of Union Bank of India Slide 7

Q&A