Punjab National Bank conducted roadshows for its QIP program, which reportedly generated strong demand from domestic mutual funds, signaling substantial investor interest.
PNB’s share price has swelled nearly 39 percent in the last one year, taking its market capitalisation to over Rs 1.23 lakh crore.
Shares of Punjab National Bank dropped 2.5 percent in trade after the company launched a Qualified Institutional Placement (QIP) where it offered shares at a discount to its current market price.
The PSU lender set a floor price of Rs 109.16 per share for its QIP program, launched on September 23. This price reflects a 2 percent discount from the closing market price of PNB shares, which stood at Rs 111.49 apiece on the same date.
At 12.06 pm, shares of Punjab National Bank were trading at Rs 109.20 on the NSE.
Previously, CNBC-Awaaz had reported that PNB was looking to raise Rs 5,000-7,500 crore through a QIP program. The roadshow for the same also reportedly attracted strong demand from domestic mutual funds, indicating significant investor interest. In January, the bank’s board approved raising up to Rs 7,500 crore in 2024-25.
Meanwhile, the public lender saw its net interest income (NII) jump over 10 percent on year to Rs 10,476.2 crore in the June quarter. Along with that, PNB’s net profit also surged almost 160 percent on-year to Rs 3251.5 crore from Rs 1,255.4 crore in the year ago period.
This also the lender’s the highest ever quarterly profit, driven by account of improvement in various parameters, including net interest income, recovery and CASA, Managing Director Atul Kumar Goel said.
Details of Share Sale Plan
PNB had previously obtained board approval to raise up to Rs 7,500 crore through share sales in one or more tranches during the financial year 2024-25. The board has now approved the preliminary placement document, including the application form for the issue, the bank announced in a regulatory filing.
The floor price of Rs 109.16 per share was set based on the pricing formula outlined under Regulation 176 of the Sebi ICDR Regulations. The bank also stated that it may offer a discount of up to 5% on the floor price, depending on market conditions.
Price Determination and Process
The final issue price will be determined in consultation with the book running lead managers appointed for the issue. The QIP is aimed at bolstering PNB’s capital base as the bank looks to raise funds in the current fiscal year.
Stock Performance in Last One Year
In terms of stock performance, Punjab National Bank faced a mixed bag of results. Over the last month, the stock attempted to secure negative returns of 6.12%. Meanwhile, the past six months were more challenging, with the stock experiencing negative returns of 12.73%.
Year-to-date returns remained in positive territory, yielding 13.95%. However, over the last twelve months, the stock delivered positive returns of 40.84%, highlighting its resilience in the longer term.
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