Punjab National Bank (PNB), a state-owned financial institution, announced the launch of a Qualified Institutional Placement (QIP) on Monday, aiming to raise up to Rs 5,000 crore at an indicative price of Rs 103.75 per share. According to market analysts, the base size of the offering is set at Rs 2,500 crore, with the potential to increase to Rs 5,000 crore depending on investor demand.

Offering Details

The bank plans to issue approximately 24.10 crore shares as part of the base offering, with the option to expand to 48.19 crore shares if the issue is upsized. The base issue will represent around 2.19% of PNB’s pre-issue outstanding equity capital, while the upsized issue will account for approximately 4.38%.

Market Performance

Shares of PNB have performed remarkably well, surging 46% over the past year, significantly outperforming the Bank Nifty, which gained 19% during the same period. On Monday, PNB shares closed at Rs 111.51.

Regulatory Compliance

In an exchange filing, PNB confirmed that its board has established a floor price of Rs 109.16 per share for the share sale. This floor price is determined according to the pricing formula specified under Regulation 176 of the SEBI ICDR Regulation. Furthermore, the bank had previously received board approval to raise up to Rs 7,500 crore through share sales in one or more tranches during the 2024-25 fiscal year.

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