Punjab & Sind Bank fixes IPO price band at Rs 113-120 per share

NEW DELHI: Punjab & Sind Bank will raise up to Rs 480 crores through its initial public offer with a price band of Rs 113-120 a share. The subscriptions to the 4-crore-share issue begin on December 13 and closes on December 16.

"We are trying to work out what will be the book value after money, that is after 31st March 2011 and roughly we are planning to give some discount over here so that there is room available for the retail investors as well and we leave something on the table for the retail investors and for the stakeholders at large," said Parveen Kumar Anand, Executive Director, Punjab & Sind Bank.

Going forward the company expexted an improvement in the book value and sought more retail participation.

"Some of the issues that have gone down very well with the retail investor, Coal India and even MOIL, got a very good oversubscription and being a last of the public sector banks we thought let us keep something on the table for the investors," he added.

The board Punjab & Sind Bank has decided against having anchor investor because the issue is small of just 4 crore shares.

At the moment, the company's capital adequacy ratio is at 13.10% and the tier 1 capital is at 7.98%, and going forward 31st March, the company expected the capital adequacy ratio to be above 14% and tier 1 capital to be above 9%.