PNB slips on QIP pricing

PNB, which is among the top five losers on the BSE, slipped over 8% to hit an intraday low at Rs.37.25, while its 10% LC for the day was at Rs.36.50.

The stock has slipped, reacting to the approval for a qualified institutional placement (QIP) to raise funds from institutional investors.

The floor price for the QIP was approved at Rs.37.35, which is at a 8% discount to its close of yesterday.

This follows the decision announced during the AGM in August, wherein the Bank had approved plans to raise Rs.10,000 crore thro’ a mix of debt and equity.

The proceeds are to be used towards augmenting the bank's tier I capital to meet the basel III and to support growth plans and to enhance the business of the bank; and for general corporate requirements or any other purposes.