Union Bank of India (BSE:532477) announced a private placement of equity shares for gross proceeds of INR 7,210,000,000 on January 20, 2017. The company will issue the shares on a preferential basis to returning investor, Government of India. As part of the transaction, for the issuance of INR 1,800,000,000 of shares, an approval from the investor is required. The company will issue the shares at a premium. The transaction was approved by the board of the company and is subject to approval at the extraordinary general meeting of the company on February 23, 2017.