Punjab & Sind Bank Limited which had launched its IPO for 4 cr shares in a price band of Rs 113-120 was subscribed 50.75 times. It received excellent response from all quarters. It would be significant to note that the employee quota has been oversubscribed. The issue had opened on 13th December and closed for QIB’s on 15th of December and for all other investors on 16th of December. This was the last issue from a bank in the PSU stable and with this issue there would now be no unlisted PSU Bank left.
The detailed subscription details of each category are given below.
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 19000000 | 946149350 | 49.80 |
| NII | 5700000 | 489281450 | 85.84 |
| Retail | 13300000 | 591240650 | 44.45 |
| Employee | 2000000 | 3215200 | 1.61 |
| Overall | 40000000 | 495854050 | 50.75 |
The subscription in the retail category indicates that the total response to the issue was Rs 7000 crs and the total number of applicants are in the region of 7 lacs. The overall response indicates that the company received bids for 24,360 crs against the issue size of Rs 480 crs. The response in the HNI category was Rs 5871 crs. The cost of funding for HNI’s at 13% interest for 9 days and 85.84 times subscription comes to Rs 33 which is slightly higher than the premium being quoted in the grey market for the share. This share at the current grey market price would be the third consecutive disaster for HNI’s beginning with MOIL and then SCI.
The issue would be priced at the upper end of the band of Rs 120 considering the demand.
