Punjab & Sind Bank shares rally 6% after lender launches QIP at floor price of Rs 40.38/share

The shares of Punjab & Sind Bank rallied nearly 6 percent on March 25 after the lender announced the launch of its qualified institutional placement (QIP) of equity shares and approved the floor price of Rs 40.38 for the issue. The shares of the PSU bank were trading at Rs 47.27 apiece in March 25 afternoon.

In an exchange filing released in the post-market hours of March 24, Punjab & Sind Bank said the QIP opened on the same day at the approved floor price. The bank further said that it may offer a maximum discount of 5 percent on the floor price. The issue price will be set by the bank after consultation with the book running lead managers appointed for the QIP.

Punjab & Sind Bank shares have now extended gains for the fifth consecutive session, rising over 16 percent during the period. The stock has made a strong recovery after hitting a 52-week low of Rs 37 per share earlier in March. However, the stock is still significantly lower than its 52-week high of Rs 74 per share. It has fallen nearly 18 percent in the past one year.

Earlier in June 2024, Punjab & Sind Bank managing director and CEO Swarup Kumar Saha told PTI that the bank is planning to raise Rs 2,000 crore in the second half of the current fiscal through the QIP. He noted that the QIP would help improve the capital adequacy ratio of the bank, which stood at 17.10 percent at the end of March 2024.