Punjab & Sind Bank - IPO

#1
NEW DELHI: Punjab & Sind Bank, the only unlisted state-owned lender, today said it has filed draft papers with market regulator SEBI for its initial public offer (IPO) through which it plans to raise about Rs 600 crore.

"We have filed a Draft Red Herring Prospectus or IPO and expects to raise something in between Rs 500-600 crore," Punjab & Sind Bank Executive Director P K Anand told PTI.

The bank proposes to issue up to 4 crore equity shares of Rs 10 each for cash at price to be discovered through a 100 per cent book building process.

The IPO is expected to hit the market by the end of November or early December depending on regulatory clearances, he said, adding the proceeds would be utilised for credit expansion.

The government would offload about 17.9 per cent of its stake through IPO and post offer its holding would come down to about 82 per cent, he said.

Currently, the government owns 100 per cent stake in the bank and is the only unlisted bank among 19 nationalised banks in the country.

The bank has appointed SBI Capital, ICICI Securities and Enam Securities as merchant bankers for its proposed IPO.

Besides, the bank has also requested the government for Rs 700 crore capital support to shore up its tier I capital above 8 per cent from 7.68 per cent at the end of March 2010.

In a bid facilitate IPO process, the government had restructured the equity structure of the bank in 2008. After the capital rejig, its equity capital came down to Rs 183.06 crore from Rs 743.06 crore.

In fiscal 2010, the bank posted an 18 per cent jump in net profit at Rs 508.8 crore compared to Rs 431.1 crore the previous year. The bank plans to increase its branch network from 918 to 1,000 by the end of March 2011

The bank had earlier got approval from the government to offload 18 per cent stake but later revised the stake dilution to 25 per cent. This was done following the government's decision that all the listed companies should increase their public holding to a minimum of 25 per cent in a phased manner.

However, the government provided exemptions to few public sector entities, including Punjab & Sind Bank, from meeting this criteria.

source :ET
 

magnet

Active Member
#2
One should apply for govt bank for long term perspective i feel now

When united bank ipo came i wasnt positive and hardly much listing gains.

But within a year or so i see 48% return.
Thats better than any other returns you get in fixed markets
 
#5
can anybody pls tell me if its possible to pay for ipos using credit card? actually many of the ipos are oversubscribed & i don't see any point in blocking the entire amount. So, i was wondering if its possible to bid with the upper limit for retail, then pay for as many shares i have. also if cc is allowed, bank gives 30 days to pay back so i can also sell the shares after listing & pay back without my bank account being touched, of course i assume i made a profit :)

any pointer??

thanx in advance
 
#7
can anybody pls tell me if its possible to pay for ipos using credit card? actually many of the ipos are oversubscribed & i don't see any point in blocking the entire amount. So, i was wondering if its possible to bid with the upper limit for retail, then pay for as many shares i have. also if cc is allowed, bank gives 30 days to pay back so i can also sell the shares after listing & pay back without my bank account being touched, of course i assume i made a profit :)

any pointer??

thanx in advance
Not Possible to invest using credit card.

But option is there: ASBA (Application Supported By Blocked Account)

Amount is blocked in your bank account, but not withdrawn, on allotment, only the alloted amount gets deducted. You get interest in that period.
Can be done fully online with most banks. Chk your bank's site for details.

I have very good experience with ASBA.
 
#9
Guys, please pour in more of your opinions about this IPO. Isn't is overpriced?
Allotment expected

Retail is 44.45 times

50 shares by lottery to any quantity applied 50 to 1650 shares , ofcourse higher the quantity stands better chance in Loteery

CHANCE ONLY
 

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