PNB to raise Rs 3000 cr in IPO

Punjab National Bank will raise about Rs 3,000 crore through its second public offer and return three crore equity shares to the government by March 31.

The paid up capital of the bank will be increased by Rs 80 crore to Rs 345.32 crore through the public issue of up to 8 crore equity shares of the face value of Rs 10 each, PNB informed the BSE today.

The issue price will be determined through book building process. The government had cleared PNB's public offer proposal on 7 January, and the the government's holding in the bank will come down to 57% from 80%.

PNB had earlier proposed to issue five crore shares to the public, but the government has revised upwards the figure to 8 crore shares.

The issue is slated to hit the market in January-March period and the bank would return 3 crore shares to the government at the issue price by March 31.

The PNB share price is hovering at about Rs 400 at major bourses. Three years ago, the Delhi-based bank had tapped the market with its maiden public offer of Rs 167 crore at less than Rs 50 per share.

The board of directors of the bank would meet on January 28 to consider the results of the third quarter of current fiscal. The bank posted a net profit of Rs 412.55 crore for the quarter ended September 30, 2004, compared to Rs 299.76 crore in the year-ago period.

Total income also increased to Rs 2,698.88 crore in the second quarter from Rs 2691.88 crore in the year-ago period.