17 December 2010

Punjab & Sind Bank IPO subscribed 50.41 times enerating bids worth Rs 24,120 crore

The initial share sale offer by state-run Punjab & Sind Bank (PSB) received an overwhelming response from the bidders getting over-subscribed 50.41 times on the final day of issue today, generating bids worth Rs 24,120 crore. The IPO which opened on December 13, generated total demand for over 201 crore shares, against 4 crore equities on offer, as per data available on the National Stock Exchange (NSE) till 1900 hrs.
"Compared to other regional public sector banks, PSB has strong operating and profitability metrics. The pricing of the issue was fairly valued which attracted investors towards the offer," Edelweiss Capital said in a note.
The issue through which the company aims to garner Rs 480 crore, closed today. Bidding by qualified institutional buyers (QIBs) for the issue closed yesterday. Today was the last date for bidding by retail and non-institutional investors. The shares reserved for qualified institutional buyers were oversubscribed 49.80 times.
Portion reserved for retail bidders got subscribed 8.38 times and non-institutional investors 22.91 times. The public offer of the state-run lender, the only unlisted nationalised bank among 19 in the country, has been fixed in the price band of Rs 113-120 a share. At the lower end of the price-band, the issue will fetch Rs 452 crore to the bank, while on the upper end, it will mop up Rs 480 crore.
SBI capital markets limited, Enam securities private limited and ICICI securities limited are the leading book running managers to the issue. The IPO proceeds would be utilised for business expansion. The funds raised would take care of the bank's credit growth requirement over the next two to three years.

src: HT
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