PNB to raise equity capital from share sale; sets floor price at Rs 35.51

Punjab National bank is an Indian multinational banking and financial services founded in 1894 | Photo: Shutterstock

Punjab National Bank (PNB) on Monday said its board has approved raising equity capital from qualified institutional investors to enhance its capital base.

For the Qualified Institutional Placement (QIP) purposes, the bank has fixed the floor price at Rs 35.51 per equity share.

The 'Relevant Date' for the purpose of the QIP is May 10, 2021 and accordingly the floor price in respect of the aforesaid QIP, based on the pricing formula as prescribed under SEBI ICDR Regulations is Rs 35.51 per equity share, PNB said in a regulatory filing.

The bank may at its discretion offer a discount of not more than 5 per cent on the floor price.

However, the bank did not disclose how much it intends to mobilise through the QIP.

The bank has a headroom to raise about Rs 3,200 crore from share sale as per the board and shareholders nod of July 9 and August 4, 2020, respectively.

The board had given nod for mobilising Rs 7,000 crore from QIP in one or more than one tranches. Of this, the bank had raised Rs 3,788.04 crore from QIP in December following which the government holding in the bank came down from 85.59 per cent to 76.87 per cent.

PNB further said that a meeting of the Capital Raising Committee is scheduled to be held on Friday, May 14, 2021, to consider and determine the issue price, including a discount, if any, for the shares to be allotted to eligible Qualified Institutional Buyers.

The issue price will be determined by the bank in consultation with the Book Running Lead Managers appointed for the QIP Issue, it said.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel