Shares of Punjab National Bank (PNB) fell as much as 8% in morning trade after the state-run lender set the floor price for its proposed QIP at Rs 37.35 per share.
The bank plans to raise Rs 7,000 crore through the Qualified Institutional Placement (QIP) route this fiscal to shore up its capital base.
PNB shares touched an intraday low of Rs 37.25, falling 8.14% on BSE against the last close of Rs 40.55. PNB share trades higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages. Punjab National Bank share has fallen 7.39% in the last 2 days.
"The Capital Raising Committee of the bank at a meeting held on Tuesday authorized the opening of the QIP issue and approved the floor price at Rs 37.35 per equity share," the lender said in a regulatory filing.
The bank may at its discretion offer a discount of not more than 5% on the floor price, it added.
PNB said the committee will meet on Friday to consider and determine the issue price for the equity shares, including a discount, if any, to be allotted to Qualified Institutional Buyers, pursuant to the QIP (qualified institutional placement).
In one week, PNB share price has fallen 3%. The stock of the lender has gained 28% in a month, although fallen 40% in one year.
The stock of the lender touched a 52-week high of Rs 66.95 and a 52-week low of Rs 26.30. Market capitalisation of the bank rose to Rs 35,666.29 crore today.