Shares in Punjab National Bank fell as much as 4%, after the bank announced the floor price for its Qualified Institutional Placement (QIP) at Rs 35.51.
"This is to inform you that in terms of the approval accorded by the Board of Directors of the Bank, at its meeting held on July 9, 2020 and approval of the shareholders of the Bank by way of a special resolution passed at the Annual General Meeting held on August 4, 2020 for the QIP, the Capital Raising Committee of the Board of the Bank has, at its meeting held today i.e.May 10, 2021, inter alia, passed the following resolutions: (i) Approved and adopted the Preliminary Placement Document dated May 10, 2021 (the "Preliminary Placement Document") and the application form dated May 10, 2021 in connection with the QIP; and (ii) Authorized the opening of the Issue today i.e. May 10, 2021. (iii) Approved the Floor Price of Rs.35.51 per Equity Share for the QIP as per SEBI ICDR Regulations," the Bank said in a release to the exchanges.
The shares of Punjab National Bank were last seen trading at Rs 34.45 on the National Stock Exchange. Banking stocks have seen a super rally in the last few quarters, while PNB stock has hardly matched the returns delivered by some of its larger peers.