Punjab National Bank (PNB), the country‘s second largest public sector bank, has raised ₹ 1,799.99 crore through its latest Qualified Institutional Placement (QIP) offering that saw the bank issue 53.33 crore shares at ₹ 33.75 per share, which is about 5 percent discount to the floor price of ₹ 35.51 per share, to institutional investors.

The QIP issue, which had opened on Monday and closed on Friday, saw several marquee institutional investors including Life Insurance Corporation (₹400 crore), Societe Generale(₹417 crore), BNP Paribas Arbitrage ₹240 crore), Morgan Stanley Asia (Singapore) Pte (₹ 150 crore) getting allotments more than 5 per cent of the equity shares offered in the QIP, sources said.

PNB was, through this QIP, looking to raise about ₹ 1800 crore including an option to retain over subscription of up to ₹ 600 crore. This was the first QIP issue that the bank offered during the current fiscal. It may be recalled that PNB had in December 2020 raised ₹ 3,788 crore through a QIP, which fell short of its then target of ₹ 7000 crore. The amount raised through that QIP included ₹ 1,500 crore investment from LIC.

CH.SS Mallikarjuna Rao, MD & CEO, PNB, had in February this year said the bank is looking for an opportune time to raise the balance ₹3,212 crore through QIP.

For the nine months ended December 31,2020, PNB had reported net profit of ₹ 1,435 crore. In the third quarter ended December 31,2020, the bank had recorded net profit of ₹ 506 crore, down 18.5 per cent over the net profit of ₹ 621 crore recorded in the previous quarter.

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