State-owned
Punjab National Bank has received board of directors approval to enhance its capital base. The lender will raise equity capital from qualified institutional investors. The bank has launched its qualified institutional placement at a floor price of Rs35.51 per equity share.
The QIP size aggregates to Rs1,800cr.
In its regulatory filing, PNB said that "the 'Relevant Date' for the purpose of the QIP, in terms of Regulation 171(a)(i) of the SEBI ICDR Regulations, is May 10, 2021 and accordingly the Floor Price in respect of the aforesaid QIP, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs.35.51 per Equity Share. Pursuant to the SEBI ICDR Regulations, the Bank may, at its discretion offer a discount of not more than 5% on the Floor Price."
Further, PNB informed that a meeting of the Capital Raising Committee of the Bank is scheduled to be held on Friday, May 14, 2021, too, inter alia, consider and determine the Issue Price, including a discount, if any, for the Equity Shares to be allotted to eligible Qualified Institutional Buyers, according to the QIP issue.
The Issue Price will be determined by the Bank in consultation with the Book Running Lead Managers appointed for the QIP Issue.
At around 10.55 am, PNB was trading at Rs34.60 per piece down by 2.8% on Sensex.