PNB share price hits 52-week high after ₹7,500 crore fund raise approval
PNB share price: After announcement of fund raise aggregating to ₹7,500 crore by Punjab National Bank (PNB), the PSU stock witnessed buying interest during morning deals. PNB share price today opened upside at ₹96.40 and touched intraday high of ₹96.55, which tunred out to be its new 52-week high on NSE. However, profit booking soon triggered in this state-owned stock and Punjab National Bank shares retraced from 52-week high and touched intraday low of ₹94.80 apiece.
However, stock market experts believe that these dips should be seen as buying opportunity as PNB share price may go up to s 110 apiece levels in near term.
PNB fund raise
In exchange filing on Thursday, PNB informed Indian stock market bourses about the fund raise citing, “Pursuant to Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Exchange is hereby informed that the Board of Directors of the Bank in its meeting held today, has approved the proposal for raising of equity capital for an amount aggregating upto Rs. 7500 Crore in one or more tranches during FY 2024-25 through Qualified Institutions Placement (QIP)/Follow on Public Offer (FPO) or any other permitted mode or a combination thereof, in accordance with the provisions of the applicable Acts / Regulations / Guidelines and subject to receipt of requisite approvals.”
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PNB share price target
Speaking on the triggers that has fueled PNB share price to a new 52-week high, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “PSU bank shares are in uptrend these days as market has gone bullish on banking and PSU stocks after recently held state assembly elections. But, the immediate trigger for PNB share price rise can be attributed to the fund raise approval.The state-owned bank has decided to raise fund aggregating to ₹7,500 crore, which means the market is seeing credit growth in near to medium term.”
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Expecting further upside in PNB share price, Sumeet Bagadia, Executive Director at Choice Broking said, “PNB share price has taken strong base at ₹88 to ₹90 levels. On the upper side, the PSU stock may soon touch ₹110 apiece levels once it sustains above ₹100 mark. So, those who have PNB shares in their stock portfolio, they are advised to hold the scrip for ₹110 target maintaining stop loss below ₹88.”
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On suggestion to fresh investors, Sumeet Bagadia said, “One can maintain buy on dips and start accumulating PNB shares from current levels for near term target of ₹110 apiece levels. However, one must maintain strict stop loss below ₹88 while taking any fresh position in the scrip.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 29 Dec 2023, 11:09 AM IST
