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.