Tuesday, December 7, 2010

Punjab and Sind Bank IPO - Analysis, Recommendation, Review

The Punjab and Sind Bank has come out with an IPO of 4 crore equity shares. President of India, acting through the Ministry of Finance, Government of India, holds 100% stake in the bank, which will be reduced to 82.07% post issue.

The IPO comprises a net issue to the public of 3.8 crore equity shares and a reservation of 20 lakh equity shares for subscription by eligible employees. The issue shall constitute 17.93% of the post-issue share capital of the bank.

The IPO will open on December 13 and will close on December 15 for Qualified Institutional investors (QIB) and on December 16 for other investors.

The objective of the issue is to augment capital base to meet the future capital requirements arising out of the growth in assets due to the growth of the Indian economy.

SBI Capital Markets Limited, Enam Securities Pvt Ltd and ICICI Securities Limited are the book running lead managers to the issue.

Recommendation:
We would recommend investors to invest in this IPO.

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