Monday, November 29, 1999

Punjab & Sind Bank IPO in July

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The only unlisted state-run lender Punjab & Sind Bank today said it is likely to come out with an initial public offer next month to sell 25 per cent government stake."We plan to file the draft red herring prospectus with Sebi in a week's time. Sebi takes three-four weeks so we are hoping to come with the IPO in late July," Punjab & Sind Bank chairman and managing director GS Vedi told reporters here.Currently, the government owns 100 per cent stake in the bank.Earlier, the bank was planning to dilute around 17 per cent stake but with the new of 25 per cent public shareholding norms, the bank plans to offload 25 per cent stake.Vedi said it is expecting approval from the government anytime to dilute 25 per cent stake."We had earlier got approval from government to offload 17 per cent but now we have sought approval for 25 per cent stake dilution," he added.Earlier, it was planning to raise Rs 400-500 crore with an equity dilution of 17 per cent but now with the revised offer it plans to mop up over Rs 500 crore.The government had on June 4 announced that all the listed companies should increase their public holding to a minimum of 25 per cent in a phased manner and the equity dilution of at least 5 per cent annually was made mandatory for reaching threshold limit.Punjab & Sind Bank has already appointed three merchant bankers, including SBI Caps, for its proposed public offer.Besides SBI Caps, the other book running lead managers," are ICICI Securities and Enam Securities for the initial public offer.

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