NEW DELHI: When the capital market is flooded with IPOs and FPOs, Punjab & Sind Bank has also joined the bandwagon to launch its IPO. The Initial Public Offer (IPO) of Punjab & Sind Bank will open for subscription on December 13. The price band has been fixed at Rs. 113-120 a share.
State-owned Punjab & Sind Bank will raise up to Rs 480 crores through its initial public offer. The subscriptions to the 4-crore-share issue closes on December 16. Retail investors will be sold shares at a discount of 5%. The board of Punjab & Sind Bank has offered the issue at the anchor investor because of its small size of just 4 crores.
The bank has fixed the low price band keeping so many factors in mind like current market scenario, performance of the public sector banks, performance of the last bank which has been listed, that is United Bank of India and a kind of response that Coal India and MOIL got from the retail investors.
Punjab & Sind Bank IPO“We are trying to work out what will be the book value after money, that is after 31st March 2011 and roughly we are planning to give some discount over here so that there is room available for the retail investors as well and we leave something on the table for the retail investors and for the stakeholders at large,” said Parveen Kumar Anand, Executive Director, Punjab & Sind Bank.
“Some of the issues that have gone down very well with the retail investor, Coal India and even MOIL, got a very good oversubscription and being a last of the public sector banks we thought let us keep something on the table for the investors,” he added.
Punjab and Sind Bank is the smallest of the state-run banks in terms of business. At the end of the last fiscal in March, the bank had total deposits of Rs.52,945.09 crore and advances of Rs.35,859.97 crore. It had 926 branches as of 31 October, 2010.
0 comments:
Post a Comment