Punjab National Bank floats Rs 5,000-crore QIP, sees 14% equity dilution

Analysts said the qualified institutional placement, combined with the capital the bank has raised through selling its stake in PNB Housing Finance earlier this month, will strengthen the bank’s capital adequacy ratio.

By: ENS Economic Bureau | Mumbai | Published: December 13, 2017 1:14:52 am
PNB floats Rs 5,000-crore QIP, sees 14% equity dilution The bank, which is the country’s second largest public sector lender, said the floor price of the shares is Rs 176.35.

State-run lender Punjab National Bank (PNB) launched a Rs 5,000-crore fundraising programme late on Monday evening through qualified institutional placement (QIP) of shares at a likely price of Rs168 per share in a move that will shore up the bank’s capital adequacy ratio (CAR).

The base size of the qualified institutional placement is Rs 3,000 crore or 17.9 crore shares, with an option to retain an additional Rs 2,000 crore through issue of another 11.9 crore shares. Shares issued under the QIP will account for 14 per cent of the bank’s total share capital, if the entire 29.8 crore shares are issued.

The bank, which is the country’s second largest public sector lender, said the floor price of the shares is Rs 176.35.

“A discount of not more than 5 per cent, or Rs 8.80 to the floor price is hereby approved,” Punjab National Bank said in a notification to the stock exchanges.

DSP Merrill Lynch, Credit Suisse Securities (India), Goldman Sachs (India), HSBC Securities and Capital Markets (India), Kotak Mahindra Capital, Morgan Stanley (India) and PNB Investment Services are the book runners for the QIP.

Analysts said the qualified institutional placement, combined with the capital the bank has raised through selling its stake in PNB Housing Finance earlier this month, will strengthen the bank’s capital adequacy ratio. FE

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement