Punjab National Bank sets a floor price for QIP at Rs 37.35 per share

Punjab National Bank (PNB), the second-biggest bank by assets in the public sector on Tuesday approved a qualified institutional placement (QIP) at Rs 37.35 per share. The lender seeks to raise up to Rs 7,000 crore through the QIP.

The public lender in a regulatory filing said, "The Capital Raising Committee of the Bank has, at its meeting held on December 15, 2020, passed (i) Authorized the opening of the Issue today i.e. December 15, 2020, and (ii) Approved and adopted the Preliminary Placement Document dated December 15, 2020(the "Preliminary Placement Document")and the application form dated December 15, 2020, in connection with the QIP; and (iii) Approved the floor price of Rs 37.35 per Equity Share for the QIP."

The bank may at its discretion offer a discount of not more than 5 per cent on the floor price, it added.

PNB said the capital raising committee will meet on Friday to consider and determine the issue price for the equity shares, including a discount, if any, to be allotted to Qualified Institutional Buyers, pursuant to the QIP (qualified institutional placement).

With this fund mobilisation, capital-to-risk-weighted assets ratio of the bank, which was at 12.8 per cent at the end of September quarter, would increase to 13.5-14 per cent.

PNB stock on Tuesday closed 1.70 per cent down at Rs 40.55 on BSE.