Public sector Punjab National Bank (PNB) on Tuesday said it will sell 10 per cent of its stake in Canara HSBC Life Insurance Company after its stock exchange listing. At present PNB has 23 percent stake in this life insurance company.
The Board of Directors of PNB, in its meeting held on Tuesday, approved the proposal to initiate the process of sale of 10 percent stake in Canara HSBC Life Insurance. It is a subsidiary of PNB whose share will be sold through initial public offering (IPO). PNB said the decision to sell the stake will be subject to regulatory approval.
Whose share is how much: Let us tell you that public sector Canara Bank and HSBC have promoter stake in Canara HSBC Life Insurance. Both of them hold 51 percent and 26 percent stake respectively. At the same time, PNB has 23 percent shareholding in the insurance company.
Big fall in PNB shares
There was a historic fall in the market on Tuesday, the second trading day of the week. PNB shares also remained untouched by this. On the day of election results, shares of PNB closed at Rs 115.35. The stock recorded a decline of 15.80% compared to a day earlier. Let us tell you that during trading the share had reached a high of Rs 137.10 and a low of Rs 106. 52 week low of this share is Rs 49.70. Whereas, 52 week high is Rs 142.90. In the last one year, PNB is one of those stocks which has given multibagger returns to investors.
Canara Bank plan
Recently, Canara Bank has approved the process of selling 14.5 percent stake in its life insurance venture ‘Canara HSBC Life Insurance Company’. This sale will be done through IPO. However, this move is subject to the approval of the Reserve Bank of India and the Department of Financial Services. The size of the IPO, appropriate time to launch the IPO and modalities of the IPO will be decided in due course of time. Along with this, Canara Bank has also planned to sell 13 percent equity shares by issuing an issue of its mutual fund subsidiary Canara Robeco Asset Management Company (CRAMC).
