Punjab & Sind Bank to raise 600 crore through IPO

The bank plans to raise around Rs 600 crore through IPO.

Punjab & Sind Bank Executive Director P K Anand told PTI, “We have filed a Draft Red Herring Prospectus or IPO and expects to raise something in between Rs 500-600 crore.”

Details about the IPO
The bank proposes to issue Rs 4 crore equity shares of Rs 10 each for cash at price that will be discovered through a 100 percent book building process.

The IPO is likely to hit the market in November end or early December, if it gets regulatory clearance on time.

Through IPO, the government will discharge about 17.9 percent of its stake and after the offer, its stake will be 82 percent.

The bank has appointed SBI Capital, ICICI Securities and Enam Securities as the merchant bankers for its proposed IPO.

The bank has even reported 18 percent increase in its net profit at Rs 508.8 crore in fiscal 2010, than previous year’s Rs 431.1 crore profit. The bank is even planning to escalate its branch networks from 918 to 1,000 by the end of March, 2011.

Punjab & Sind Bank, incorporated in 1908, is the only unlisted bank among 19 nationalized banks in the country.