Punjab National Bank Raises 5000 Crore Rupees Through QIP Issue

Punjab National Bank Raises 5000 Crore Rupees Through QIP Issue

State-owned Punjab National Bank (PNB) has successfully raised 5000 crore rupees by issuing equity shares to qualified institutional buyers. The bank allocated approximately 48.19 crore equity shares at an issue price of 103.75 rupees per share, representing a discount of 4.96 percent to the floor price of 109.16 rupees per share.

The Qualified Institutional Placement (QIP) issue was open for subscription from September 23 to 26, 2024. PNB reported receiving bids totaling 41,734 crore rupees from various institutional investors, including mutual funds, foreign portfolio investors, and insurance companies. This demand was 16.7 times the base issue size of 2500 crore rupees and 8.3 times the total issue size of 5000 crore rupees.

The capital raised through this QIP will enhance the bank's Common Equity Tier 1 (CET-1) Ratio and overall Capital Adequacy Ratio.

In a separate development, Property Share Investment Trust, India's first Small and Medium Real Estate Investment Trust, has filed for an initial public offering (IPO) of its PropShare Platina scheme, aiming to raise up to 353 crore rupees. This IPO is a fresh issue with no offer-for-sale component, and the proceeds will primarily be used for the acquisition of the Prestige Tech Platina asset.

The PropShare Platina scheme encompasses 246,935 square feet of office space in the Prestige Tech Platina building in Bengaluru, which will be leased to a US-based tech firm for nine years, with a rent increase of 15 percent every three years. Investors are projected to receive a 9 percent distribution yield for the fiscal year 2026. Property Share was founded by Kunal Moktan and Hashim Khan, both of whom have extensive experience in the real estate sector. ICICI Securities is the lead manager for the IPO, and the units will be listed on the BSE.