Three major banks raises capital via QIP
PSU Bank Alert: Punjab & Sind Bank, UCO Bank, Central Bank of India raises capital via Qualified Institutional Placement (QIP).
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On Tuesday's Market Trade, the major focus lies upon the shares of UCO Bank, Central Bank of India, and Punjab & Sind Bank following their announcements to increase capital using Qualified Institutional Placement (QIP).
While UCO Bank shares fell 2.43% to Rs 37.31, Punjab & Sind Bank share price rose 13.25% to Rs 50.49. On the BSE, Central Bank of India shares dropped 2.66% to Rs 45.60.
The boards of directors of three public sector banks (PSBs) have sanctioned the raising of funds by means of share issue to institutional investors. Reports say the government has approved a capital-raising project of ?10,000 crore by means of an offer for sale (OFS) for five PSU banks to guarantee adherence to criteria for minimum public participation.
QIP announcements of the following three PSU banks:
To raise the revenue of Rs 2,000 crore, UCO Bank started its QIP procedure on March 24. The government is anticipated to reduce its 95.39% present holding in the bank by 3%. The UCO Bank QIP floor price is Rs 36.07 per share.
Meanwhile, the Central Bank of India initiates the QIP on March 24, following requisite approvals from its Board and shareholders. The bank has determined a floor price of Rs 42.62 per share, calculated as per the SEBI pricing formula.
With an aim to collect Rs 2,000 crore, Punjab & Sind Bank has set a floor price of Rs 40.38 per share for its QIP. The bank has said it might decrease the floor price for the issuance by as much as 5%.
The QIP projects carried out by these PSU banks are part of a larger plan to increase their capital base and guarantee adherence to shareholding rules.
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