The capital raising committee of Punjab National Bank (PNB) approved the closure of the qualified institutions placement (QIP) issue on 18 December 2020.
The sub-committee of the board approved the issue of 106,70,52,910 equity shares at Rs 35.50 each to the eligible qualified institutional buyers in the QIP, aggregating to Rs 3,788.03 crore.
The issue price is at 4.95% discount to the floor price of 37.35 per share. The bank had planned to raise Rs 7,000 crore through QIP route.
PNB intends to utilize the net proceeds towards augmenting the bank's tier I capital to meet the Basel III and to support growth plans and to enhance the business of the bank and for general corporate requirements or any other purposes.
At the annual general meeting held on 4 August 2020, the bank's shareholders approved a proposal to raise Rs 10,000 crore through a mix of both equity and debt.
PNB is a public sector bank. The Government of India held 85.59% stake in the bank as on 30 September 2020.
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The bank's net profit surged 22.4% to Rs 620.81 crore in Q2 September 2020 from Rs 507 crore recorded in Q2 September 2019. Total income during the quarter grew by 50.7% YoY to Rs 23,438 crore.
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