Fundraising + Corporate Action
UCO Bank Approves ₹7,700 Cr Fundraising Plan and Dividend for FY26
NSE
ucobank
BSE
532505
UCO Bank has approved a multi-pronged capital raising plan worth ₹7,700 crore, including ₹2,700 crore via equity and ₹5,000 crore via bonds, along with recommending a dividend of ₹0.44 per share for FY26
PRICE-SENSITIVE TRIGGER
Event: Capital Rasie & Dividend Approval
Type: Fundraising + Corporate Action
Impact: Positive
Immediate Effect: Strengthens capital base and supports future growth; mild dilution risk
Key Metrics:
- Dividend: ₹0.44 per share
- Equity Raise: ₹2,700 crore
- Debt Raise (Bonds): ₹5,000 crore
- Total Fundraising: ₹7,700 crore
Highlight:
- Large capital infusion planned to support growth and regulatory capital needs
What Happened ?
The Board of UCO Bank approved:
- Dividend recommendation for FY26
- Equity capital raising plan
- Debt capital raising via bonds
All subject to shareholder and regulatory approvals
key highlights
- Dividend:
- ₹0.44 per equity share
- Subject to AGM approval
- Equity Fundraise:
- ₹2,700 crore via:
- QIP
- FPO
- Other permissible routes
- To be executed in FY27 in one or more tranches
- ₹2,700 crore via:
- Debt Fundraise:
- Up to ₹5,000 crore
- Instruments include:
- AT1 Bonds
- Tier II Bonds
- Infrastructure Bonds
- Basel III compliant
Note:
- Capital raising is subject to approvals and market conditions
Risk Analysis
Key Risks
- Equity dilution impacting EPS
- Market conditions may affect fundraising timing
- Higher cost of capital if interest rates rise
- Execution delays in capital raise
Worst Case Scenario
- If market conditions worsen, capital raise could be delayed or done at unfavorable valuations
Risk Level: Medium
Company Commentary
- Focus on strengthening capital base
- Supporting future credit growth
- Ensuring compliance with Basel III norms
- Balanced approach via equity + debt mix
Official Exchange Filing: UCO Bank