1. City Union Bank has approx 180 branches Plus in India.
2. Existing profit making and dividend paying bank and paid Dividend for FY 2009 75%.
3. L & T has stake in CUB at a price of Rs 18.75 since 2007.
4. It was targeted by many corporates including Hindujas, Reliance and L & T for the heafty premium.
5. Now rights issue Record Date 13th November - Rights Ratio 25 shares for every 100 shares held at Rs.6/- per share.
6. On account of premium charged by the bank Reserves of the bank will go up and Book value will go up.
7. It is almost free 25 shares for every 100 shres -shareholder.
8. Cub securities is also one of broking company under arm of City Union Bank.
9. When only broking company shares are quoting Inida infoline Rs 158/-(FV Rs.1) and IB Sec Rs 39/- (FV Rs 2)
GeojitRs. 42 (FV Rs1) why CUB will not shoot?
10. CUB having lowest paid up capital among pvt banks i.e. Rs 40 crs (Rs 32 crs plus Rs 8 crs) post this rights issue and Book value Rs 21/-
11. It has to trade Rs. 40/- cum rights hence it is moving up.
| NIFTY 
