The state-run Punjab National Bank has initiated a share sale to raise a minimum of Rs. 3000 crore from qualified institutions. The deal term sheet suggests an upsize option for Rs. 2000 crore more.
In the sale, shares will be sold at a price of Rs.168 per share. The capital raising plan of the second largest state run lender aims to boost the capital ratio of the bank.
Through the recapitalisation, the government will provide a stimulus of Rs. 1.35 lakh crore via recapitalisation bonds and a sum of Rs. 58,000 crore is to be raised by lenders themselves.
Credit Suisse, Goldman Sachs, HSBC, Kotak Mahindra Capital, Bank of America Merrill Lynch, PNB Investment Services and Morgan Stanley are managing the share sale.
The stock of PNB was last seen trading at Rs. 175.10 up 1.30% at 12:18 on the BSE.