Public sector lender Punjab & Sind Bank plans to raise over R500 crore through initial public offer (IPO) for which it filed a draft red herring prospectus with capital market regulator Securities and Exchange Board of India (SEBI) on Monday. The proceeds of the IPO would be utilised for credit expansion.
"We have filed a draft red herring prospectus and expects to raise around R500 crore," said P.K. Anand, executive director, Punjab & Sind Bank.
The bank proposes to issue up to 4 crore equity shares of R10 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.
The government would offload about 17.9 per cent of its stake through IPO and post offer its holding would come down to about 82.1 per cent. 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 plans to open 100 branches in the current fiscal to take its branch network more than 1,000 from current of 920 branches. Of the total new branches planned, 30 will be opened in west, south and east part of the country.