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Punjab & Sind Bank debuts with 20% premium
Shares of state-owned Punjab and Sind Bank opened at Rs 144 on National Stock Exchange, with a premium of 20% over issue price of Rs 120 a share, which was below experts' expectations. Experts were expecting 25% premium on listing.
Shares of state-owned Punjab & Sind Bank opened at Rs 144 on National Stock Exchange, with a premium of 20% over issue price of Rs 120 a share, which was below experts' expectations. Experts were expecting 25% premium on listing.
The stock touched a high of Rs 146.70 and low of Rs 127.10 in early trade. At 9:37 hours IST, a share was trading at Rs 130.15, up 8.46%, with volume of 1.8 crore equity shares.
Retail investors and employees received shares at Rs 114 - a 5% discount to issue price. So at opening price, the premium for them was 26.32%. It means profit of Rs 30 per share. For 50 shares, the profit is Rs 1500 on investment of Rs 5700.
In a press conference, PK Anand, Executive Director of bank said overall capital to risk asset ratio (CRAR) ratio would be above 14%. The bank could think of FPO or rights issue, he said. Anand is confident of maintaining net interest margin (NIM) above 3%. Recently bank raised BPLR by 50 bps."
On Bombay Stock Exchange, a share was trading at Rs 130, after hitting a high of Rs 149.70 and low of Rs 127.60 in early trade. Traded volume was more than 97 lakh equity shares.
The bank raised Rs 470.82 crore through IPO, which was subscribed 50.75 times. The 4 crore equity shares' IPO was opened for subscription during December 13-16.
The object of the issue was to augment capital base to meet the future capital requirements arising out of the growth in assets due to the growth of the Indian economy.
President of India, acting through the Ministry of Finance, Government of India, holds 82.07 stake in the bank post issue.
