Punjab National Bank (PNB) shares advanced as much as 1.91 per cent on Friday after its housing finance arm, PNB Housing Finance, received the approval from capital markets regulator Securities & Exchange Board of India (Sebi) to raise Rs 2500 crore through an initial public offering. At 12.21 pm, shares of Punjab National Bank were trading 1.34 per cent up at Rs 139.80. The scrip opened the day at Rs 138.55 and had touched a high and low of Rs 141.20 and Rs 138.55, respectively, in trade so far.
PNB Housing Finance had filed IPO papers with Sebi in July. The markets regulator issued its final ‘observations’ on October 6 on the draft offer documents, which is necessary for any company to launch the public offer. According to the Draft Red Herring Prospectus (DRHP), the proceeds of the issue will be used to augment capital base to meet future capital requirements and for general corporate purpose.
For the quarter ended June 30, 2016, Punjab National Bank reported 57.49 per cent drop in net profit at Rs 306.36 crore against Rs 720.71 crore in the corresponding quarter a year ago. However, total income of the bank increased by 3.71 per cent to Rs 13930 crore for the quarter under review, from Rs 13,432.05 crore for the corresponding quarter of the previous year.
In the past one year, shares of the company have increased marginally 0.88 per cent to Rs 137.95, whereas BSE Sensex jumped 2.97 per cent during the same period.