“Application to Act as a Merchant Banker in the Rights Offer of United Bank of India”

Eligibility

• Category-I Merchant Banker holding valid License of SEBI.
• Minimum networth of Rs. 50 crore as on March 31, 2012.
• Prior experience of managing at Rights Offer of Public Sector Undertaking desirable.

Scope of Works

• Advising the Bank on the timings and the modalities of the capital market offer
• Ensuring best value to the Bank.
• To advise and assist the Bank in identification and selection of legal advisors, other intermediaries and  coordinate their work under the guidance of the Bank.
• Pre-market survey, road shows, book building and generation of interest among investors.
• Undertaking market research along with guiding in pricing and allotment and after-sale support.
• Guide and facilitate in obtaining necessary approvals, completion of regulatory requirements.
• Performing all other responsibilities connected with such offerings.
• Underwriting connected with the offering, if required.
• Any other activity related to above decided mutually

Selection Process

The Bank reserves the sole and absolute discretion to select any one or more Merchant Banker(s) among the  applicants. The Bank shall not be liable at any point of time to disclose the basis of selection and the decision of the Bank cannot be challenged in any way before any regulatory or statutory body(ies).

Fee Structure

• Merchant Bankers will need to quote an all inclusive consolidated fee for managing the issue.
• A drop dead fee, if any, payable in case Bank abandons the offering at any stage after the process has been  started may also be indicated separately.
• The entire fee (100%) shall be payable after completion of the issue and listing of the shares of the bank on stock exchanges.

Earnest Money Deposit (EMD)

The selected Merchant Banker shall be required to make an non-interest bearing Earnest Money Deposit of  Rs.200,000/- (Rupees Two Lakhs only), to be refunded within 45 days of the listing of the new securities.
The EMD shall be forfeited in case of breach of any terms or conditions under this document or the main Merchant Banking Agreement, or any other document which is legally or contractually binding on both the  parties, in case the Merchant Bankers backs out after issuance of the engagement letter to them, or any misconduct, below-par performance or act of commission or omission wilful or otherwise.

Validity

The engagement letter issued shall be valid for a period of 12 months from the date of issue. Any downward  revision in fees/cost in the intervening period shall be automatically passed on to the Bank.

Courtesy: United Bank of India