PNB raises ₹5,000 crore via QIP to augment CAR

Punjab National Bank (PNB) raised ₹5,000 crore via Qualified Institution Placement (QIP) of about 48.19 crore equity shares at an issue price of ₹103.75 a share, which was at a discount of 4.96% to the floor price of ₹109.16 apiece.

PNB said it received bids for about ₹41,734 crore for the QIP issue, which is 16.7 times the base issue size of ₹2,500 crore and 8.3 times the total issue size of ₹5,000 crore, from qualified institutional buyers including mutual funds, foreign portfolio investors and insurance firms.

“The amount of capital raised through QIP issue will augment the bank’s CET-1 ratio and the overall capital adequacy ratio,” PNB said in a statement.

The issue opened on September 23 and closed September 26. It received an ‘encouraging response’ with participation by a diversified investor base. Post COVID all banks, especially public sector lenders are mobilising capital to meet regulatory norms.

Shares of PNB closed at ₹109.25, up 1.82% on the BSE on Friday.

Published - September 27, 2024 09:33 pm IST

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
You might also like