Punjab & Sind Bank soars 10% on preferential issue to LIC

Punjab & Sind Bank has soared 10% to Rs 94.65 after the state-owned bank said that it will issue shares up to 5% of the paid-up capital on preferential basis to Life Insurance Corporation (LIC).

“The board of directors of the bank has recommended preferential issue of equity shares to the LIC up to the extent of 5% of the proposed total paid up equity share capital of the bank,” the bank said in a filing to the stock exchanges.

The bank proposes to issue 11.29 million equity shares at a rate to be decided in terms of Sebi ICDR Regulations, subject to approval from the Government of India and regulatory compliances, it added.

As many as 722,747 shares have already changed hands on the counter in morning deals, as against an average around 700,000 shares that were traded daily in past two weeks on the NSE and BSE.