According to Mr. G.S. Vedi, Chairman and Managing Director, Punjab & Sind Bank, the bank is likely to come out with an initial public offer next month to sell 25 per cent government stake. Currently, the government owns 100 per cent stake in the bank.
Earlier, the bank was planning to dilute around 17 per cent stake but with the new 25 per cent public shareholding norms, the bank plans to offload 25 per cent stake.
Earlier, it was planning to raise Rs 400-500 crore with an equity dilution of 17 per cent but now with the revised offer it plans to mop up over Rs 500 crore.
The government had on June 4 announced that all the listed companies should increase their public holding to a minimum of 25 per cent in a phased manner and the equity dilution of at least 5 per cent annually was made mandatory for reaching threshold limit.
Punjab & Sind Bank has already appointed three merchant bankers, including SBI Caps, for its proposed public offer. Besides SBI Caps, the other book running lead managers are ICICI Securities and Enam Securities, for the initial public offer.
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