Punjab & Sind Bank Files DRHP For IPO
Punjab & Sind Bank has filed DRHP with SEBI to issue 4 crore shares through an IPO by diluting 17.93% of stake by the government.
Post offer Government's holding would come down to about 82.07%.
The funds will be used for its expansion plans and for other general corporate purposes.
SBI Capital, 
Enam Securities and ICICI Securities are the book running lead managers for the issue.
Transaction Reference: SEBI
Punjab & Sind Bank was established in 1908 and was nationalised in 1980. As on July 31, 2010, Its network comprised of 920 branches and 63 ATMs across India with a total of 8,116 employees, serving over 0.60 crore customers.
It also sponsors one regional rural bank, Sutlej Gramin Bank, in collaboration with the GoI and the state Government of Punjab.
It is the only unlisted bank among 19 nationalised banks in the country.
The bank had earlier got approval from the government to offload 18% stake but later revised the stake dilution to 25%. This was done following the government's decision that all the listed companies should increase their public holding to a minimum of 25% in a phased manner.
However, the government provided exemptions to few public sector entities, including Punjab & Sind Bank, from meeting this criteria.
The bank has also requested the government for Rs.700 crore capital support to shore up its tier I capital above 8% from 7.68% at the end of March 2010.
In a bid to facilitate IPO process, the government had restructured the equity structure of the bank in 2008. After the capital rejig, its equity capital came down to Rs.183.06 crore from Rs.743.06 crore.
It plans to increase its branch network from 918 to 1,000 by the end of March 2011.
It posted a net profit at Rs.506.82 crore for 2009-10 as compared to 430.20 crore in 2008-09. It had a net worth of Rs.2,120.62 crore as on March 2010.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 16/12/10 | Punjab & Sind Bank -IPO | IPO / Offerings | 103.73 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/02/12 | Private Equity | AU Financiers India Private Limited | - | Planned | |
| 01/02/12 | Private Equity | Vontobel Funds Inc | Kotak Mahindra Bank Limited | 174.39 | Completed |
| 01/02/12 | M&A | Kotak Mahindra Bank Limited | Credit Card Portfolio | - | Completed |
| 01/02/12 | Private Equity | Aberdeen Asset Managers Limited | Housing Development Finance Corporation Limited | 275.47 | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Punjab And Sind Bank | The President of India | ‘Bank House’, 21, Rajendra Place, New Delhi 110 008, India |
Corporation Bank Punjab National Bank |
www.psbindia.com |
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