PNB shares fall 15%, now allowed to sell stake in this company through IPO

Public sector Punjab National Bank (PNB) on Tuesday said it will sell its 10 per cent stake in Canara HSBC Life Insurance Company following its stock exchange listing. Currently PNB holds 23 percent stake in this life insurance company.

PNB’s board of directors in its meeting held on Tuesday approved the proposal to initiate the sale process of 10 per cent stake in Canara HSBC Life Insurance. It is a subsidiary of PNB whose shares will be sold through an initial public offer (IPO). PNB said the decision on the stake sale will be subject to regulatory approval.

Who owns how much: Let us tell you that public sector Canara Bank and HSBC have promoter stake in Canara HSBC Life Insurance. Both of them account for 51 percent and 26 percent respectively. At the same time, PNB has a 23 percent shareholding in the insurance company.

PNB shares fall sharply

The second business day of the week saw a historic decline in the market on Tuesday. Shares of PNB also remained untouched by this. On the day of election results, PNB’s share was Rs. closed at 115.35. The stock was down 15.80% from a day earlier. Let us tell you that the stock reached a high of 137.10 rupees and a low of 106 rupees during the trading. The stock’s 52-week low price is Rs 49.70. Whereas, the 52 week high is Rs 142.90. Over the past one year, PNB has been one of the stocks that has given multibagger returns to investors.

Canara Bank Scheme

Recently, Canara Bank has approved the sale of 14.5 percent stake in its life insurance venture ‘Canara HSBC Life Insurance Company’. The sale will be done through an IPO. However, the move is subject to the approval of the Reserve Bank of India and the Department of Financial Services. The size of the IPO, the appropriate time to launch the IPO and the modalities of the IPO will be decided in due course. Along with this, Canara Bank also plans to sell 13 per cent equity stake in its mutual fund subsidiary Canara Robeco Asset Management Company (CRAMC) through an issue.

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