PNB to raise funds through Employee Stock Purchase Scheme

PNB to raise funds through Employee Stock Purchase Scheme

PNB Fund Raise Planning through Employee Stock Purchase Scheme

Punjab National Bank (PNB), a state-owned bank, has announced its intention to raise funds through the sale of 15 crore shares as part of its Employee Stock Purchase Scheme (ESPS).

By offering these shares at the current market price, PNB aims to generate approximately Rs 780 crore in funds. The proposal involves the issuance and allotment of 15 crore new equity shares, each with a face value of Rs 2. These shares will hold an equivalent rank and privileges to the existing equity shares, including dividend payment. The ESPS will be executed in one or multiple tranches, and the bank has scheduled its annual general meeting to discuss this matter on June 30.

To ensure that the government’s shareholding remains above 52 percent, PNB-ESPS shares will be priced and offered under conditions determined appropriate by the board. As of March 31, 2023, the government holds a 73.15 percent stake in the bank.

Previously, in 2018, PNB raised Rs 500 crore by granting employees the opportunity to purchase shares through the staff stock purchase scheme. This initiative involved the issuance of up to 10 crore new equity shares at a discounted price of Rs 53.95 per share.

About PNB:

Punjab National Bank (PNB), headquartered in New Delhi, is a public sector bank in India. It was established in May 1894 and currently ranks as the third largest public sector bank in terms of business volumes, and the second largest in terms of its network. With a customer base of over 180 million, the bank operates through 12,248 branches and offers access to 13,000+ ATMs.

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