Punjab and Sind Bank IPO Allotment opens today on Dec 13 with price band of Rs 113-120 as Punjab & Sind Bank’s IPO plan gets Sebi clearance. Punjab & Sind Bank is the only state-owned bank that is not yet listed. Punjab & Sind Bank IPO would consist of 40,000,000 Equity Shares of Rs.10/- each. Punjab & Sind Bank, has got market regulator Sebi’s approval for its estimated Rs 600-crore initial public offer (IPO) likely to hit markets.

Enam Securities Pvt. Ltd., ICICI Securities Ltd., SBI Capital Markets Ltd. are the Book Running Lead Managers to the Issue whereas Link Intime India Pvt. Ltd. is the Registrar. According to market sources the Securities and Exchange Board of India (Sebi) yesterday on December 12, 2010 gave clearance to the draft prospectus. The Punjab and Sind Bank proposes to issue up to 4 crore equity shares of Rs 10 each for cash at price to be discovered through a 100 per cent book building process.

Currently, the government owns 100 per cent stake in the bank and is the only unlisted bank among 19 nationalised banks in the country. The bank had filed its draft red herring prospectus with Sebi on August 26. In 2009-10, the bank had posted an 18 per cent jump in net profit to Rs 508.8 crore, from Rs 431.1 crore in the previous year.

Total income rose by 19 per cent to Rs 4,345.9 crore, while net interest income grew by 17 per cent to Rs 1,183.9 crore and business rose by 37.9 per cent to Rs 81,894 crore during the 2009-10 financial year.

In its effort to get higher participation from the bank’s employees, Punjab & Sind Bank is facilitating in opening demat accounts for its 8,000 staff. The bank proposes to reserve 20 lakh equities for subscription by the eligible employees, as per details available with the draft prospectus filed with the Sebi.

Download The Red Herring Prospectus for Punjab & Sind Bank IPO

Credit Rating Agency CARE has assigned an IPO Grade 4/5 to the proposed IPO of Punjab & Sind Bank IPO. The IPO Grade so assigned indicates Above Average fundamentals of Punjab & Sind Bank. CARE assigns IPO grades on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. Click here to download the Punjab & Sind Bank IPO Grading Document

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