PNB slumps 6 per cent on announcing QIP issue floor price

The shares of Punjab National Bank (PNB) fell as much as 6 per cent on Wednesday, continuing the trend seen in the last two days after the bank announced the opening of qualified institutional placement (QIP) issue. The price of the state-owned lender fell below the QIP flow price of Rs 37.35 during today’s early trading session before showing some recovery.

The Capital Raising Committee of the bank authorised the opening of the QIP issue and approved the floor price at Rs 37.35 per equity share, the bank said in its filing to the exchanges after the trading hours on Tuesday.

PNB has taken approval for raising Rs 7,000 crore through the QIP route this fiscal. The bank in the preliminary placement document said that it intends to utilise the net proceeds towards augmenting the bank’s tier I capital to meet Basel III as well as to support growth plans and enhance the business of the bank.

The bank further announced a meeting of the bank’s Capital Raising Committee, which is scheduled to be held on December 18, 2020 (Friday) to consider and determine the issue price for the equity shares, including a discount, if any, to be allotted to qualified institutional buyers.

At 2.50 pm on Wednesday, the stock of Punjab National Bank (PNB) was trading at Rs 37.85 per share, down by 6.66 per cent or Rs 2.70 per share on BSE, against a 0.85 per cent gain in the benchmark index. The 52-week high was recorded at Rs 66.95 and the 52-week low was Rs 26.30 on BSE.