Punjab & Sind Bank IPO : Likey by early December

by khalid on 22/11/2010 · 0 comments

The Initial Public Offer (IPO) of Punjab & Sind Bank is likely to open by early December 2010. The Board of the only unlisted state-owned Bank of the country has approved to come out with an initial public offering (IPO) to raise Rs 600 crore. Market regulator SEBI has already approved the DRHP filed by the bank for the IPO. The bank proposes to issue up to 4 crore fresh equity shares of Rs 10 each at a price deciced through a 100% book building process. This would dilute the government’s holding in the bank by 17.9% and would come down to about 82% post-offer. The management of bank is going to request the Government to infuse Rs 500 crores.

Punjab & Sind Bank is the sole unlisted bank out of the 19 nationalised lenders in the country. For the half year ended September, 2010, the bank posted an 11% jump in net profit to Rs 261 crore from Rs 235 crore in the same period last year. Total business rose by 33% to Rs 88,841 crore from Rs 66,614 crore at the end of September, 2009.

In order to enhance employee participation in the IPO, Punjab & Sind Bank has opened demat accounts for every member of its 8,000-strong workforce. The bank proposes to reserve 20 lakh shares for subscription by eligible employees.

Stay tuned to BelltheBull Blog for more on Punjab & Sind Bank IPO !

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