Shares of Punjab National Bank (PNB) fell 8% to Rs 37.25 on BSE on Wednesday, dropping 10% in the last two trading days after the bank announced on Tuesday the opening of the placement issue. qualified institutional (QIP). However, the state lender’s share price fell below the QIP minimum price of Rs 37.35 per share.
Over the past month, the stock has rallied sharply, reaching nearly 40% through Monday. At 09:44, the stock was trading 6% lower at Rs 38.15, compared to the 0.71% rise in the S&P BSE Sensex. The counter recorded huge trading volumes, with a total of 87 million shares changed hands on NSE and BSE.
The bank’s Capital Raising Committee, in a meeting held Tuesday, cleared the opening of the QIP issue and approved the minimum price at Rs 37.35 per share, PNB said in a regulatory filing. The bank has taken approval to increase this tax’s Rs 7,000 crore through the QIP route.
The bank may, at its discretion, offer a discount of no more than 5% off the minimum price, he said. PNB said the committee will meet on Friday to consider and determine the issue price of the shares, including a discount, if any, to be awarded to qualifying institutional buyers, under the QIP.
PNB in the preliminary placement document stated that the Bank intends to use the net proceeds to increase the Bank’s Tier I capital to meet Basel III and to support growth plans and to improve the Bank’s business.