Business & Investment

Punjab National Bank’s QIP of 1,800 rupees opens. Shared tank 5%

New Delhi: (PNB) shares fell by as much as 5% on Tuesday as the state-owned lenders’ board approved the raising of equity capital from qualified institutional investors to strengthen their capital base.

PNB lenders are seeking to raise up to Rs 180 billion by selling their shares. This is about 44 percent of the previously announced target funding.

In early Tuesday trading, Scrip fell 5% to Rs 33.75, well below the benchmark S & P BSE Sensex Index, down 0.77% to 49,122.42.

(For QIP, the bank fixed the minimum price at Rs 35.51 per share, which is close to the previous closing price. The PNB board approved the minimum price and issuance at a meeting on Monday.

Banks are trying to strengthen their capital to absorb the new slip in the second wave of the coronavirus pandemic.

According to senior bank executives, the PNB issue worth Rs 1,800 includes the option to maintain an oversubscription up to Rs 600.

The state bank’s funding committee will meet again on May 14 to consider and determine issue prices, including discounts of up to 5% on the minimum rate, the bank said in a regulatory filing. ..

PNB raised Rs 3,788 through QIP last December.

Punjab National Bank’s QIP of 1,800 rupees opens. Shared tank 5%

https://economictimes.indiatimes.com/markets/stocks/news/punjab-national-banks-rs-1800-crore-qip-opens-shares-tank-5/articleshow/82541195.cms Punjab National Bank’s QIP of 1,800 rupees opens. Shared tank 5%

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