Edelweiss, Goldman Sachs only two bidders for PNB Gilts

New Delhi, Aug 29 | Updated: Aug 30 2008, 08:09am hrs
EdelweissCapitalLtdandGoldmanSachshave emerged asthe onlytwo biddersforbuyingPunjabNationalBanks74.07%stakeinitssubsidiaryPNB Gilts,accordingtoaninvestmentbankerfamiliarwiththedevelopment. PNBGiltssharesextendedgainsonthenews,butEdelweissC pitalshares wereunmoved. At1:10 pm,PNBGiltswasatRs 26.10on the BombayStockExchange,up 4.6%fromThursdaysclose.

Edelweissshareswereup3.5%atRs 536onNationalStockExchange.

PNBGiltsisaprimarydealeringovernmentsecurities.Itunderwrites primaryissuesofgovernmentsdatedsecurities,treasurybillsandstate governmentsecurities.Italsodealsinpublicsectorundertakingbonds, inter-corporatedepositsandmoneymarketinstruments. ThelastdateforsubmittingthebidswasAugust14. Thebanksdecisiontogetoutofthe primarydealershipbusinessispartofits planstoexitnon-corebusinesses,theotherbeingmutualfundswherethe companyhassoughtbidstosellits30%stakeinPrincipalPNBAsset ManagementCompany. PNBGiltshasapaid upcapitalofRs 135crore andreservesofRs 392 crore.

NW 18