Punjab National Bank Edges Lower After Board Approves Raising Equity Capital From Investors

Share price of Punjab National Bank (PNB) edged lower by around three per cent on Tuesday, May 11, a day after the company’s board approved raising equity capital from investors to enhance the capital base. On Tuesday, May 11, Punjab National Bank opened on the BSE at Rs 35, witnessing an intra day high of Rs 35.35, and an intra day low of Rs 33.75, in the trading session so far. According to a statement shared by the bank to the BSE, the board has approved raising equity capital from qualified institutional investors or QIP to strengthen its capital base.

Punjab National Bank stated that for the Qualified Institutional Placement purposes, the bank has fixed the floor price at Rs 35.51 per equity share. The statement said that date for the purpose of the QIP is May 10, 2021, and the floor price with respect to the QIP, based on the pricing formula under the SEBI regulation is Rs 35.51 per equity share. Punjab National Bank may offer a discount of not more than five per cent on the floor price, at its discretion.

Additionally, a meeting of the capital raising committee is scheduled to be held on Friday, May 14, 2021, to consider and determine the issue price, including a discount for the equity shares to be allotted to the eligible qualified institutional buyers. 

On the NSE, Punjab National Bank opened at Rs 34.85, touching an intra day high of Rs 35.35, and an intra day low of Rs 33.75, in the session so far. It was last trading 2.53 per cent lower at Rs 34.70 on the NSE.

Shares of Punjab National Bank were last trading 2.67 per cent lower at Rs 34.65 on the BSE.