MUMBAI: Punjab & Sind Bank Initial Public Offering (IPO) has been opened today for subscription on December 13. The price band of the share is Rs 113 to Rs 120 per share. The bank plans to raise Rs 470 crore through IPO by diluting 17.93 per cent of government holding.
The issue will close on Dec.15 for QIBs and on Dec.16 for retail and HNIs. The IPO comprises a net issue of 3.8 crore of equity shares to public and reservation of 20 lakh equity shares for subscription by eligible employees (in the employee reservation portion), where retail and employees get a 5% discount. The issue constitutes 17.93% of post-issue paid-up capital of the bank.
Experts suggests investors to invest in Punjab & Sind Bank IPO because if its modest valuations, superior asset quality and high return on net worth. The bank has 926 branches and 68% of them are located in Northern regions followed by 20% in Central India. The bank is predominantly present in north and central India. The bank has 63 owned ATMs and access to more than 50,000 ATMs across the country.
Punjab & Sind BankOn the positive front, the bank also possess a healthy credit-deposit ratio of about 68 per cent, a reasonable cost to income ratio of 48 per cent and a high return on net worth of 13.5 per cent (not annualised) for the half year ended September 2010. The investors with a medium to long term perspective can subscribe to the issue.
The bank will utilize the issue proceedings to expand its capital base to meet the future capital requirements arising out of the growth in its assets due to economic growth of the Indian economy and for other general corporate purpose.
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