Punjab National Bank (PNB), the country‘s second largest public sector bank, has closed its qualified institutional placement (QIP) offering with about 5 per cent discount to the floor price for the issue.
Equity capital has now been raised at ₹ 33.75 per share as against the floor price of ₹ 35.51 fixed earlier by the bank.
The actual amount that has been raised through this QIP by the bank has however not been disclosed as yet. The fact that the QIP sailed through in the midst of the tough pandemic times is itself a commendable feat, say banking industry observers.
PNB was through this QIP looking to raise about ₹ 1800 crore including an option to retain oversubscription of up to ₹ 600 crore.
This QIP, which was opened on Monday, was the first QIP issue that the bank offered during the current fiscal. It may be recalled that PNB had in December 2020 raised ₹ 3,788 crore through a QIP, which fell short of its then target of ₹ 7000 crore. The amount raised through that QIP included 1,500 crore investment from LIC.
CH.SS Mallikarjuna Rao, MD & CEO, PNB, had in February this year said the bank is looking for an opportune time to raise the balance ₹3,212 crore through QIP. PNB had last year aimed to raise ₹14,000 crore, including ₹7,000 crore in QIP.
For the nine months ended December 31,2020, PNB had reported net profit of ₹ 1,435 crore. In the third quarter ended December 31,2020, the bank had recorded net profit of ₹ 506 crore, down 18.5 per cent over the net profit of ₹ 621 crore recorded in the previous quarter.