Punjab National Bank (PNB) plans to issue equity shares to Life Insurance Corporation on a preferential basis. The board of directors of the bank on Wednesday approved issuance of up to 1,58,40,607 equity shares of Rs 10 each at a premium of Rs 993.69 a share to LIC of India.
The bank also plans to issue up to 1,28,02,757 equity shares to the Central Government on a preferential basis at the same price (premium of Rs 993.69).
An extraordinary general meeting of shareholders has been convened on March 20 to seek their approval for the preferential allotment to LIC of India, the bank said in a filing to the Mumbai stock exchange.
PNB's shares closed at Rs 1,021.20 at the National Stock Exchange on Wednesday. The Centre currently holds 58 per cent stake in the bank.