PNB Secures ₹5,000 Crore via Qualified Institutional Placement
State-owned Punjab National Bank successfully raised Rs 5,000 crore through an equity share issue to qualified institutional players. The issue saw significant interest, with bids reaching Rs 41,734 crore, 8.3 times the total issue size. This will enhance the bank’s capital adequacy ratios.
- Country:
- India
State-owned Punjab National Bank (PNB) has successfully raised Rs 5,000 crore through an equity share issue targeted at qualified institutional players.
The bank allocated approximately 48.19 crore equity shares at an issue price of Rs 103.75 per share, which represented a 4.96 percent discount to the floor price of Rs 109.16 per share, the bank announced in a statement.
The QIP issue, available for subscription from September 23 to 26, 2024, received bids from Qualified Institutional Buyers (QIBs) including Mutual Funds, Foreign Portfolio Investors (FPIs), and Insurance Companies, amounting to Rs 41,734 crore. This is 16.7 times the base issue size of Rs 2,500 crore and 8.3 times the total issue size of Rs 5,000 crore.
The capital generated from this QIP issue will boost the bank's CET-1 Ratio and overall Capital Adequacy Ratio, stated PNB.
(With inputs from agencies.)
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