Punjab National Bank (PNB) shares soared as much as 4.47 per cent in morning trade on Thursday after PNB Housing Finance on Tuesday approached Sebi for an initial public offer worth up to Rs 2,500 crore.
At 10.39 am, shares of PNB were trading 2.99 per cent up at Rs 117.30. The scrip opened at Rs 119 and has touched a high and low of Rs 119 and Rs 116.85, respectively, in trade so far. Sensex was up 25.90 points at 27,196.19.
PNB Housing Finance is promoted by Punjab National Bank. The company would be using the proceeds from the share sale mainly towards augmenting its capital base.
At the end of March 2016, Punjab National Bank had 51 per cent stake in the company. Post IPO, it would “continue to hold approximately 35-37 per cent of the issued and paid-up share capital”, according to the DRHP.
Shares of Punjab National Bank gained 64 per cent to Rs 113.90 on July 5 from its 52-week low level of Rs 69.40 on February 17.
For the quarter ended March 31, 2016, the bank reported net loss of Rs 5,367.14 crore, down 1,850.76 per cent, against net profit of Rs 306.56 crore in the corresponding quarter a year ago.