Menu
Search

Punjab and Sind Bank plans $104.16 Million IPO

By SiliconIndia   |   Tuesday, August 31, 2010   |    2 Comments
Print Print Email Email
Bangalore: State-run Punjab and Sind Bank plans to raise more than Rs.5 billion ($104.16 million) through its initial public offer (IPO) and may consider the participation of anchor investors for the offer. The issue is expected to hit capital market by the end of November or early December depending on regulatory clearances and the proceeds would be utilized for credit expansion. The government would offload about 17.9 percent of its stake through IPO and post offer its holding would come down to about 82 percent. Currently, the government owns 100 percent stake in the bank and is the only unlisted bank among 19 nationalized banks in the country. Punjab and Sind Bank is the only unlisted state-run lender. The bank proposes to issue upto four crore equity shares of Rs.10 each for cash at price to be discovered through a 100 percent book building process. Punjab & Sind Bank would be the second government-run entity after Coal India (CIL) that may seek anchor investors to support its initial public offering. As per the draft red herring prospectus (DRHP) filed with the capital market regulator SEBI, the bank may allocate up to 30 percent of the qualified institutional portion, to anchor investors, on a discretionary basis. According to DRHP, the bank has reserved 50 percent of the net issue for qualified institutional buyers. Anchor investors are those investors, who buy shares of the company before the launch of the public issue. The concept of anchor investors was approved by SEBI last year. The bank has appointed SBI Capital, ICICI Securities and Enam Securities as merchant bankers for the IPO.
Write your comment now
Submit Reset
Reader's comments(2)
1: The bank may also disclose the allocation percentage of IPO to its own staff members.
Posted by:J I S Dhillon - 02 Sep, 2010
2: Good to hear that more state run banks are coming up with IPOs.
Posted by:shakita devi - 31 Aug, 2010
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit