PNB QIP issue falls short of target by 46 per cent

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State-owned Punjab National Bank (PNB) has raised a little over 54 per cent of the targeted fund mop-up through QIP, which closed on Friday with Rs 3,788.04 crore in the kitty.

Private sector IDBI Bank too closed its QIP without disclosing the amount raised.

PNB had planned to raise up to Rs 7,000 crore through qualified institutional placement (QIP) that had opened on Tuesday (December 15).

The capital raising committee of the board of directors of the bank has its meeting held on December 18, 2020, passed the resolution to declare the closure of the QIP today (December 18) pursuant to the receipt of applications from eligible qualified institutional buyers, PNB said in a regulatory filing.

The bank said it has approved the issuance of 106,70,52,910 equity shares at an issue price of Rs 35.50 (at a discount of 4.95 per cent from floor price) aggregating to Rs 3788,03,78,305 (Rs 3,788.03 crore) to be allotted to eligible qualified institutional buyers in the issue.

The lender said it has also approved the placement document and issuance confirmation of allocation notes to successful bidders in the issue, intimating them of allocation of equity shares in the QIP.

PNB had conducted a non-deal roadshow before the launch of the issue.

Meanwhile, LIC-controlled IDBI Bank too closed its QIP on Friday (opened on December 15) at an issue price of Rs 38.60 per share, at a discount of 5 per cent to the floor price of Rs 40.63 per share.

IDBI Bank’s QIP was for Rs 2,000 crore, however, the bank has not informed how much fund it has mopped-up from the issue.

. The private sector lender had originally targeted to raise Rs 6,000 crore via QIP, which was downsized to Rs 2,000 crore when it opened earlier this week on Wednesday.

PNB shares closed 1.22 per cent down at Rs 36.55 apiece on BSE. IDBI Bank settled 1.70 per cent lower at Rs 40.50 per scrip.



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