Punjab & Sind Bank IPO to hit market by early Dec

Punjab & Sind Bank, the only unlisted state-owned lender, is aiming to hit the capital market with an estimated Rs 600 crore initial public offering by the end of November or in early December.

"The process is at initial stages and we are awaiting approval from the capital market regulator Sebi. We hope to launch the IPO by the end of November or by early December subject to regulatory clearances," a top official of Punjab & Sind Bank told PTI.

The bank proposes to issue up to 4 crore equity shares of Rs 10 each for cash at price to be discovered through a 100 per cent book building process.

The government would offload about 17.9 per cent of its stake through IPO and post offer its holding would come down to about 82 per cent, he said.

Currently, the government owns 100 per cent stake in the bank and is the only unlisted bank among 19 nationalised banks in the country.

In its effort to get higher participation from the bank's employees, Punjab & Sind Bank is facilitating in opening demat accounts for its 8,000 staff.

"About 6,000 employees of the bank have opened the demat accounts and we hope it will result in higher participation by them," the official said.

To facilitate smooth opening of demat accounts, the bank has tied up with some brokerage firm who are opening demat account for free of cost, the official said, adding, similar facility is also being provided to customers.

The bank has reserved 20 lakh equities for subscription by the eligible employees, as per details available with the draft prospectus filed with the Sebi.

"We want that no employee should miss the opportunity to invest in the IPO in last time just because they do not have a demat account," the official added.

PSB filed its draft red herring prospectus with Sebi on August 26.

Coal India Ltd, the state-run coal mining giant that is also coming out with its mega IPO, too had offered a similar facility for its employees.