Union Bank of India on Tuesday approved plans to raise Rs 3,000 crore through a qualified institutional placement (QIP) to fund its business growth.

The state-owned bank has set the floor price for the issue at Rs 142.78 per share.

The bank may offer a discount of not more than 5% on the floor price to be decided in consultation with the book-running lead managers.

The committee of directors for raising capital funds, in its meeting held today, cleared the proposal for raising of funds for an amount not exceeding Rs 3,000 crore through issue of equity shares via QIP, the bank said in a regulatory filing. 

This will be subject to the requisite regulatory and statutory approvals, the lender added.

The bank further informed that the opening date of the issue is today.

The decision for allotment of shares to Qualified Institutional Buyers will be taken on 23 February, by the committee of directors for raising capital Funds, it added.