Punjab National Bank (PNB) is set to launch its qualified institutional placement (QIP) within a week, CNBC Awaaz reported on Monday, citing unidentified sources. India’s second-largest PSU bank plans to raise Rs 5,000-7,500 crore through the equity issuance, said the report.
The roadshow has reportedly attracted strong demand from domestic mutual funds, indicating significant investor interest. The QIP is expected to be priced at a 5-6 percent discount to the current market price.
PNB share price rose as much as 3 percent on Monday to Rs 111.5, in line with gains seen in other major PSU bank stocks, including SBI, Bank of Baroda, and Canara Bank, which gained 2-4 percent.
This development follows PNB’s earlier announcement of plans to raise Rs 5,000 crore, with the option to increase the size to Rs 7,500 crore, via a QIP during the ongoing financial year. In January, the bank’s board approved raising up to Rs 7,500 crore in 2024-25, and during its April-June earnings, the bank confirmed the QIP would be launched within the current quarter.
Earlier this month, PNB Executive Director Binod Kumar confirmed that the bank would raise funds this quarter. “We are already in the roadshow, so it will be very shortly,” Kumar told Informist.
Kumar also said the bank was not planning any tier-I or tier-II bond issuances in the near term, as it was adequately capitalised. However, he mentioned that PNB may consider raising funds via infrastructure bonds at a later stage.
PNB’s share price has surged nearly 39 percent over the past year, taking its market capitalisation to over Rs 1.23 lakh crore.
Separately, last week, India’s largest PSU bank, State Bank of India, raised Rs 7,500 crore in its second issue of Basel III-compliant tier-II bonds for FY25, taking its total tier-II bond issuance to Rs 15,000 crore for the current fiscal year.
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