The IPO (Initial Public Offer) bt state owned PSB (Punjab Sind Bank) will be in market early next month most probably. Expectedly this will issue of 40 million equity shares with a face value of Rs 10 each. Equity dilution of 17.9 per cent will be seen by IPO. The government stake of 82.1 per cent will fall after the offer.
The PK Anand (Executive Director) said:
“We are planning to launch it in the first fortnight of December. The funds will be used to scale up lending and meet our requirements for the next two-three years. Besides getting us capital for expansion, listing will put a lot of positive pressure on us to perform,”
In India PSB is the only unlisted public sector bank which may give 5% discount to retail investors and employees. To consider this proposal board will meeting next week.
Earlier it was expected that bank will launch the IPO in July 2010 but as board has to rework the plans with government rules
which is 25% public shareholding. The rule was then relaxed to bank and it was allowed to them with their earlier plan of plan for 17-18% equity dilution.
Anand also said that markers are now looking better and this delay has proved the blessing in disguise after the coal India issue. Government of India has 100% stake in this bank and bank has reached capital infusion of Rs 700 crore to shore up its Tier-I capital above 8%.
In last fincial year, bank has posted 18 per cent jump in net profit at Rs 508.8 crore. Total income rose 19 per cent to Rs 4,345.9 crore and the net interest income 17 per cent at Rs 1,183.9 crore and business rose by 37.9 per cent at Rs 81,894 crore.
source of news : http://sify.com/finance/punjab-sind-bank-ipo-in-early-dec-news-bank-klxb5Igagah.html
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