Government-owned Punjab & Sind Bank is entering the capital market with an initial public offer (IPO) of 40 million shares in the price band of Rs 113-120 per equity share. At the upper end of the band, the bank will raise around Rs 470 crore. Employees and retail investors will be allotted shares at five per cent discount to the issue price.
According to a release, the offer comprises a net issue of 38 million shares to the public, while two million shares are reserved for eligible employees. The IPO will constitute 17.93 per cent of the bank’s post-issue share capital. The offer will open for subscription on December 13. For institutional investors, it will close on December 15, with the last day for retail and high net-worth individuals being December 16. The book running lead managers to the issue are SBI Capital Markets, Enam Securities and ICICI Securities.
The bank had sought a capital infusion of Rs 700 crore from the government, but was yet to hear from the latter on the same, said executive director P K Anand. The issue has been assigned CARE IPO Grade 4, indicating above average fundamentals.
