PNB to hold roadshow for proposed Rs 7,000 crore QIP next week

Punjab National Bank said it will hold a roadshow for the proposed Rs 7,000 crore qualified institutional placement (QIP) issue next week

Punjab National Bank on Saturday said it will hold a roadshow for the proposed Rs 7,000 crore qualified institutional placement (QIP) issue next week.

The bank will be participating again in the non-deal roadshow and meeting prospective investors on December 7-8, 2020, PNB said in a regulatory filing.

The bank has taken approval for raising Rs 7,000 crore through Qualified Institutional Placement (QIP) route this fiscal.

In a non-deal roadshow, nothing is for sale, a bank official said, adding it is an opportunity to discuss and develop interest in an upcoming offer.

The bank has already taken approval from the board for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP (Qualified Institutional Placement), PNB Managing Director S S Mallikarjuna Rao had said last month.

"Of this, Rs 4,000 crore is for Tier II. Against this, we have raised Rs 2,500 crore and remaining Rs 1,500 crore and additional Rs 3,000 crore from AT-1 bonds will be raised before November 30. With respect to QIP of Rs 7,000 crore, we are planning to go to the market in the second or third week of December. It would depend on the book running lead manager (BRLM) and roadshows," he had said.

With this fund mobilisation, capital-to-risk-weighted assets ratio, which was at 12.8 per cent at the end of September 2020 quarter, would go up to 13.5-14 per cent.