The board of directors of Punjab National Bank (PNB) on Monday approved the sale of shares to raise ₹7,500 crore of funds through Qualified Institutions Placement (QIP)/Follow-on Public Offer (FPO) during 2024-25.
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The board has approved the raising of equity capital for an amount aggregating up to ₹7,500 crore in one or more tranches during FY2024-25. Funds can be generated either via QIP or FPO or in any other permitted mode or a combination.
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The bank is allowed to raise funds with share sales by ensuring that the shareholding of the Government of India does not fall below 52 per cent.
The Extraordinary General Meeting of the Shareholders of the Bank through video conferencing will be held on Tuesday, 05 March 2024 for voting on the same.
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” Board has approved the raising of equity capital for an amount aggregating up to 7500 crore (including share premium, if any) in one or more tranches during FY 2024-25 through Qualified Institutions Placement (QIP)/Follow-on Public Offer (FPO) or any other permitted mode or a combination thereof in such manner and on such terms and conditions as may be deemed appropriate, by the applicable Acts/Regulations/Guidelines and subject to receipt of all requisite approvals and the shareholding of Govt. of India not falling below 52%, through special resolution,” said the PNB in its stock exchange filing on Monday, January 29.
The PSU bank had announced its capital generation plan a month ago in December. In its stock exchange filing, dated December 29, the bank said that the Board of Directors had approved the proposal for raising equity capital via QIP or FPO. PNB shares close 2.78% higher at ₹107.52 per share on BSE on Monday.
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Published: 29 Jan 2024, 07:56 PM IST