Shares of Punjab National Bank (PNB) ended the day 2.84% higher after reaching a day’s high of Rs 111.90 on 23rd September. The company announced it is set to launch its qualified institutional placement (QIP) within a week with plans to raise Rs 5,000–7,500 crore through the equity issuance, according to the report.

The roadshow for the QIP has attracted strong demand from domestic mutual funds, reflecting significant investor interest. The QIP is expected to be priced at a 5-6% discount to the current market price.

This follows Punjab National Bank’s earlier announcement to raise Rs 5,000 crore, with an option to increase it to Rs 7,500 crore via a QIP in the current financial year. In January, the bank’s board approved raising up to Rs 7,500 crore in 2024-25 and confirmed the QIP would launch within the current quarter during its April-June earnings report.

Earlier this month, PNB Executive Director Binod Kumar confirmed that the bank plans to raise funds this quarter, stating, “We are already in the roadshow, so it will be very shortly.”

Kumar also noted that the bank is not planning any Tier-I or Tier-II bond issuances in the near term due to adequate capitalisation but may consider raising funds through infrastructure bonds later on.

So far in 2024, the stock has surged by almost 14%. The company’s market capitalisation stands around Rs 122,783 crore.

At 3:30 PM, the shares of PNB closed 2.84% higher at Rs 111.49 on NSE.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!