The Hindu Business Line : Banks, insurance cos, FIs put Rs 172 cr in PNB issue

PUBLIC sector banks, insurance companies and financial institutions have put in Rs 171.8 crore in Punjab National Bank's Rs 165-crore IPO, which was oversubscribed over four times.

The issue attracted Rs 670 crore and the allotment is expected to be over in a couple of weeks. Of the Rs 670 crore, Qualified Institutional Buyers (QIBs - public and private banks and insurance companies, FIs, MFs) put in Rs 269.8 crore.

LIC, which put in Rs 31 crore, has emerged the top QIB, followed by Morgan Stanley (Rs 25 crore) and Alliance Capital and the Central Bank of India (Rs 20 crore each). Five banks (Andhra, Bank of India, Canara, OBC and Union Bank) have invested Rs 10 crore each.

Eleven public sector banks, led by the Central Bank, have put in Rs 97.2 crore, and the public sector general insurance companies, Rs 13.8 crore. Financial institutions (IDBI, IFCI, SIDBI and UTI) have chipped in with another Rs 29.8 crore.

Sources in the banking industry told Business Line today that the IPO attracted 1.5 lakh applications. The total subscription of PNB employees amounted to Rs 40 crore, therefore, the net public subscription works out to Rs 630 crore.

Market analysts believe that the retail public subscription could be anywhere between Rs 200 crore and Rs 300 crore.

The behaviour of the PNB scrip will have a bearing on the proposed IPOs of some other PSU banks - Canara, Union and Allahabad, to name a few.

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Banks, insurance cos, FIs put Rs 172 cr in PNB issue