The Hindu Business Line : Bank of Punjab to issue fresh shares to four investors at Rs 38

BANK of Punjab today said that it is issuing fresh equity shares to various investors including The Bank of Nova Scotia, Canada and Bharti Enterprises Pte Ltd at Rs 38 per share.

In a notice to stock exchanges, the bank said that its board has approved the issue of 2,42,85,176 (around 18.78 per cent stake on increased equity capital) equity shares to four investors at a price of Rs 38 per share aggregating Rs 92 crore.

Out of the 2.42 crore shares, the bank will issue 64.51 lakh equity shares constituting 4.99 per cent of the total post-issue paid-up share capital to The Bank of Nova Scotia, Canada.

A similar number of shares will be issued to Bharti Enterprises Pte Ltd and ICB Financial Group Holdings Ltd, Switzerland at the same price.

In addition, 38.78 lakh equity shares (three per cent) will be issued to Ms Jyotsna Sharma, proprietor of B.N. Enterprises, and 10.52 lakh shares (0.814 per cent) to Mr V.N. Koura.

"These are pure investors and not strategic investors. The exercise was being done for the past 2-3 months. We had given the mandate to Ernst & Young for capital raising," said Mr C.R. Sharma, Managing Director.

On buying 4.99 per cent stake in the bank, a Bharti official said: "This is a financial investment made by Bharti Enterprises as it had done in TV Today, and has nothing to do with Bharti Televentures."

The bank said that the issue and allotment would be subject to the approval of shareholders and all regulatory approvals.

It has fixed March 23 as for holding the EGM to seek shareholder approval.

Even though the announcement came after the closure of stock market, the stock price of the company was buzzing since morning.

In today's trading, the stock price jumped 14.14 per cent to close at Rs 44.40 on the BSE with volume of 1.51 crore shares. On the NSE it closed at Rs 44.60, up 14.64 per cent with volume of 3.58 crore.

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