Basis of Allotment

Union Bank of India

Union Bank of India

(Originally incorporated on November 11, 1919 under the Companies Act, 1913 and Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on July 19, 1969)

Head Office & Corporate Office: 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021, Maharashtra, India
Phone: (91 22) 2289 2000; Fax: (91 22) 2288 1979; Email: rbmenon@unionbankofindia.com;
Website: www.unionbankofindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF UPTO 45,000,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS.110 PER EQUITY SHARE AGGREGATING RS. 4,950 MILLION (THE "ISSUE") BY UNION BANK OF INDIA ("THE BANK" OR "THE ISSUER"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 40,500,000 EQUITY SHARES OF RS. 10 EACH (THE "NET ISSUE") AND A RESERVATION FOR EMPLOYEES OF 4,500,000 EQUITY SHARES OF RS. 10 EACH, AT THE ISSUE PRICE.

THE ISSUE WILL CONSTITUTE UPTO 8.91% OF THE FULLY DILUTED POST-ISSUE PAID-UP CAPITAL OF THE BANK.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 110 PER EQUITY SHARE WHICH IS 11 TIMES THE FACE VALUE OF THE EQUITY SHARES.


The Issue was made through the 100% Book Building Process wherein 50% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers (including 5% of the QIB portion that would be specifically reserved for Mutual Funds). Further, not less than 15k of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Up to 4,500,000 shares shall be allotted on a proportionate basis to Eligible Employees.
The Board of Directors of Union Bank of India wish to thank the investing public for their response to the Issue which opened for subscription on February 15, 2006 and closed on February 21, 2006. The Issue received 146225 applications for 1331541300 Equity Shares resulting in 29.59 times subscription. The details of the applications received In the Issue from Qualified Institutional Buyers ("QIBs"), Non-Institutional Bidders, Retail Individual Bidders and Employee categories are as under:

Category No. of Applications No. of shares bid Subscription
Qualified Institutional Buyers 197 1226995600 60.59
Non-Institutional Bidders 3260 60206050 9.91
Retail Individual Bidders 129524 36535750 2.57
Employees 13244 7803900 1.73

Final Demand
The final demand at different bid prices is as under:

Bid Price

No.of
Equity Shares

% to
Total
CumulativeTotal Cumulative %
to total
100 10534100 0.76 1389229450 100.00
101 80750 0.01 1378695350 99.24
102 43900 0.00 1378614600 99.24
103 26400 0.00 1378570700 99.23
104 234500 0.02 1378544300 99.23
105 22472800 1.62 1378309800 99.21
106 115700 0.01 1355837000 97.60
107 5459950 0.39 1355721300 97.59
108 9999250 0.72 1350261350 97.19
109 21350 0.00 1340262100 96.48
110 1292083650 93.01 1340240750 96.47
Cut Off 48157100 3.47 48157100 3.47
1389229450 100

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ("BSE") on Monday, March 6, 2006.

A) Allocation to Employees
The Basis of Allotment to the Employees category, who bid at the cut-off price or at the Issue Price of Rs. 110/- per Equity Share, was finalized In consultation with BSE. The Bank received 13244 valid applications for 7803900 Equity Shares as against a reservation of 4,500,000 Equity Shares resulting in subscription of 1.73 times. The indicative category wide details of the Basis of Allotment are given below:

Category No.of Applns. %to Total No.of Equity
Shares Applied
% to
Total
No.of Equity
Shares Allocated
Ratio Total No. of Equity
Shares Allocated
50 323 2.44 16150 .21 50 FIRM 16150
100 1237 9.34 123700 1.59 58 FIRM 71746
150 106 0.80 15900 .20 86 FIRM 9116
200 1566 11.82 313200 4.01 115 FIRM 180090
250 172 1.30 43000 .55 144 FIRM 24768
4000 4 0.03 16000 .21 2307 FIRM 9228
4100 1 0.00 4100 .05 2364 FIRM 2364
5000 36 0.27 180000 2.31 2808 FIRM 101088
5400 1 0.00 5400 .07 3039 FIRM 3039
7150 1 0.00 7150 .09 4048 FIRM 4048
8000 1 0.00 8000 .10 4538 FIRM 4538
8500 1 0.00 8500 .11 4826 FIRM 4826
9000 7 0.05 63000 .81 5065 FIRM 35455
10000 13 0.09 130000 1.67 5595 FIRM 72735
11500 1 0.00 11500 015 6473 FIRM 6473

B) Allocatlon to Retail Investors
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with BSE. The Bank received 129524 valid applications for 36535750 Equity Shares in this category resulting in 2.58 times subscription. The total number of Equity Shares allotted in this category is 14175000: The category wide details of the Basis of Allotment are given below:

Category No. of Applns. % to Total Total No. of Equity}
Shares Applied
% to
Total
No. of Equity
Shares Allocated
Ratio Total No. of Equity
Shares Allocated
50 19759 15.26 987950 2.70 50 26-67 383350
100 31799 24.55 3179900 8.70 50 45-58 1233550
150 5679 4.38 851850 2.33 58 FIRM 329382
200 19133 14.77 3826600 10.47 78 FIRM 1492374
250 3676 2.84 919000 2.52 97 FIRM 356572
300 7730 5.97 2319000 6.35 116 FIRM 896680
350 0.71 323050 0.88 136 FIRM 125528
400 7095 5.48 2 838000 7.77 155 FIRM 1099725
450 15060 11.63 6777000 18.55 174 FIRM 2620440

ADDITIONAL

1 4-7 8600
500 4790 3.70 2395000 6.56 194 FIRM 929260
550 181 0.14 99550 0.27 213 FIRM 38553
600 512 0.40 307200 0.84 233 FIRM 119296
650 76 0.06 49400 0.14 252 FIRM 19152
700 3 50 0.27 245000 0.67 272 FIRM 95200
750 1 56 0.1 2 117000 0.32 291 FIRM 45396
800 388 0.30 310400 0.85 310 FIRM 120280
850 109 0.08 92650 0.25 330 FIRM 35970
900 12108 9.35 108 97200 29.83 349 FIRM 4225692

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders, who bid at the cut-off price or at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with ESE. The Bank received 3260 valid applications for 60206050 Equity Shares in this category resulting in 9.91 times subscription. The number of shares allotted to Non-Institutional Bidders is 6075000. The indicative category wide details of the Basis of Allotment are given below:

Category No. of AppIns. % to
Total
Total No. of Equity
Shares Applied
% to
Total
No. of Equfty
Shares Allocated
Ratio Total No. of Equity
Shares Allocated
950 10 0.31 9,500 .02 96 FIRM 960
1000 1048 32.15 10,48,000 1.74 101 FIRM 1,05,848
1050 18 0.55 18,900 .03 106 FIRM 1,908
1100 38 1.17 41,800 .07 111 FIRM 4,218
1200 17 0.52 20,400 .03 121 FIRM 2,057
10000 148 4.54 14,80,000 2.46 1009 FIRM 1,49,332
50000 33 1.01 16,50,000 2.74 5045 FIRM 1,66,485
100000 26 0.80 26,00,000 4.32 10090 FIRM 2,62,340
1818200 1 0.03 18,18,200 3.02 183464 FIRM 1,83,464
2500000 1 0.03 25,00,000 4.15 252260 FIRM 2,52,260
3857500 1 0.03 38,57,500 6.41 389238 FIRM 3,89,238
5000000 1 0.03 50,00,000 8.30 504521 FIRM 5,04,521
9091000 1 0.03 90,91,000 15.10 917030 FIRM 9,17,030

D) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were initially allotted 5% (1012500 Equity Shares) of the quantum of shares available (20250000 Equity Shares) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining 19237500 Equity Shares on a proportionate basis. The sectoral cap and other limits applicable to the holding of shares in a corresponding new bank, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, have been taken into account while allotting shares.

Category Fls/ Banks MFs Flls Insurance
Companies
Provident
Funds
Total 
No. of  Shares 2333688 4476789 12172793 1236917 29813 20250000

The Board of Directors of the Bank at a meeting held at Mumbai on March 7, 2006 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.

The Refund Orders / allotment advice in respect of refunds due to applicants has been dispatched to the addresses of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, If any, with the depositories. The shares allocated to the successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Bank is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation will also be available on the website of the Registrar to the Issue, MCS Limited, at http://www.mcsind.com All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below

MCS LIMITED (Unit: UBI-FPO)
Sri Padmavati Bhavan, Plot No. 93, Road No. 16, MIDC Area, Andheri (East), Mumbai 400093.
Tel: (91 22) 5502 5235; Fax (91 22) 2820 1783, E-mail: ubifpo@mcsind.com; Website: http://www.mcsind.com

 

Place : Mumbai
Date : March 8, 2006

For Union Hank of India
Sd/-
K. Cherian Varghese
Chairman & Managing Director

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE PROSPECTS OF UNION BANK OF INDIA.

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