The board of directors of Punjab National Bank approved opening of qualified institutional placement (QIP) on Monday. The Capital Raising Committee of the bank would meet on May 14, Friday, to consider and determine the issue price for the equity shares to be allotted to eligible qualified institutional buyers, the public sector lender informed in a regulatory filing.
The PNB board had approved the issue in its meeting on July 9, 2020, while the shareholders approved the same via a special resolution passed at the Annual General Meeting held on August 4, 2020 for the QIP.
In its latest meeting, the board passed a resolution related to approval and adoption of the Preliminary Placement Document dated May 10, 2021, and the application form dated May 10, 2021 in connection with the QIP. The board also authorised opening on the issue on May 10, 2021.
The board further approved the floor price of Rs 35.51 per equity share for the QIP, as per SEBI's Issue of Capital and Disclosure Requirements (ICDR) Regulations.
"The 'relevant date' for the purpose of the QIP, in terms of Regulation 171(a)(i) of the SEBI ICDR Regulations, is May 10, 2021, and accordingly the floor price in respect of the aforesaid QIP, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 35.51 per equity share. Pursuant to the SEBI ICDR Regulations, the bank may, at its discretion offer a discount of not more than 5 per cent on the floor price," PNB said in its filing.
"Further, in terms of Regulation 29(1) of the SEBI ICDR Regulations, we wish to inform you that a meeting of the Capital Raising Committee of the bank is scheduled to be held on Friday, May 14, 2021, to, inter alia, consider and determine the issue price, including a discount, if any, for the equity shares to be allotted to eligible qualified institutional buyers, pursuant to the QIP issue," the bank further added.
PNB said it will determine the issue price for the QIP after consulting the book running lead managers appointed for the QIP issue.