PNB raises ₹5,000 crore equity capital via QIP 

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Punjab National Bank (PNB), country’s second largest public sector bank, has raised ₹5,000 crore via Qualified Institutions Placement (QIP).

The bank’s capital raising committee on Friday approved allotment of 48.19 crore equity shares at an issue price of ₹103.75 per equity share. The issue price was at a discount of 4.96 per cent to the floor price of ₹109.16 per equity share. 

 The QIP Issue was launched on September 23 and closed on September 26 and received an encouraging response from the market with participation by a diversified investor base.

 PNB received Bids from Qualified Institutional Buyers (QIBs) including Mutual Funds, Foreign Portfolio Investors (FPIs), Insurance Companies, etc., to the tune of ₹41,734 Crore for the QIP Issue, which is 16.7 times the base Issue Size of ₹2500 Crore and 8.3 times the total Issue Size of ₹5000 Crore. 

The amount of capital raised through QIP issue will augment PNB’s CET-1 Ratio and the overall Capital Adequacy Ratio. With the latest capital raising, the paid-up capital of bank has increased from ₹ 2202.20 crore to ₹ 2298.59 crore.

Nearly 21.89 per cent of QIP issue has been allotted to Citigroup Global Markets Mauritius Pvt—ODI. 

The other marquee investors who have been allotted equity shares equal to or more than 5 per cent of the issue size are BofA Securities Europe SA —ODI (allotted 8.3 per cent) SBI Contra Fund (7.9 per cent), Morgan Stanley Asia (Singapore) Pte-ODI (5.9 per cent) and Goldman Sachs (Singapore) Pte-ODI (5.8 per cent), an exchange filing by PNB showed.