PNB
sets price band at Rs350-390
Our
Banking Bureau
4 March 2005
New
Delhi: The price band for the follow-on public offer
by Punjab National Bank (PNB) has been fixed from Rs350
to Rs390 per equity share of the face value of Rs10. The
issue would be open for subscription from March 7.
At
the lower end of the price band, the bank will raise
Rs2,800 crore from the issue whereas at the upper end
it will be Rs3,120 crore.
The
minimum application size has been fixed at 15 shares
and its multiples.
PNB
will offer eight-crore equity shares to the public.
The net offering, however, would be 6.4 crore shares
with 10 per cent (80 lakh shares) reserved for employees
and another 10 per cent (80 lakh shares) for the existing
shareholders.
The
bank has reserved 35 per cent of the net offering for
retail individual investors who can bid for equity shares
up to Rs1 lakh in value. QIBs (qualified institutional
bidders) can bid up to 50 per 
cent
of the net offering whereas minimum 15 per cent has
been reserved for non-institutional bidders. With this
issue, the government's holding in the bank is slated
to reduce to 57 per cent from 80 per cent.
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