Pnb Closes At 21% Premium Over Ipo Price

The Punjab National Bank (PNB) scrip, which was listed today on the Bombay Stock Exchange, closed at a premium of 20.64 per cent at Rs 37.40 to the issue price of Rs 31. The first few trades were executed at Rs 38.75.

The scrip hit a high of Rs 40.10 in initial trades and later on came off to close at Rs 37.40. The scrip logged volumes of about 18.12 lakh shares, amounting to Rs 6.74 crore. The weighted average price for the scrip, which hit a low of Rs 35 in noon trades, was Rs 37.25.

The 107-year-old bank had last month come out with an initial public offer (IPO) of around 5.30 crore equity shares of Rs 10 each at a premium of Rs 21, aggregating Rs 164.49 crore . The IPO, which was oversubscribed by 4.29 times by the public and 2.85 times by the employees, was for augmenting its long-term resources.

 

PNB chairman and managing director, S S Kohli, who rang the bell at the BSE to mark the listing of the scrip, said the IPO underscored the fact that the markets have started to view to banking positively.

The successful IPO will enthuse other public banks such as Canara Bank, Central Bank of India, Union Bank of India and Allahabad Bank to tap the market, he added.

On the performance of the bank, the PNB chief pointed out that the bank