To invite bids in couple of days
Press Trust of India / New Delhi July 25, 2008, 19:54 IST
Public sector lender Punjab National Bank will exit from its primary
dealership subsidiary PNB Gilts Ltd by selling its entire 74 per cent
stake.
The bank will invite bids from those interested in buying the stake,
PNB sources told PTI.
"In the next two days we will invite bids through a public notice. We
at present hold 74 per cent, we are going to divest the entire stake,"
sources said.
Earlier, media reports have said the state-run bank would sell only 26
per cent stake in PNB Gilts. The sources also said the bank has
appointed Enam Securities as the merchant banker for the sale
process.
In a filing on the Bombay Stock Exchange, PNB said the bank has
initiated the process of selling its stake in PNB Gilts Ltd.
The same information was also filed by PNB Gilts on the
exchange.
PNB Gilts, a subsidiary of PNB, is a primary market dealer. It derives
its revenue from brokerage arising out of dealing in government
securities and interest income besides from trading profit in the
same.
The sources said PNB can undertake these activities through the bank
itself. As such, there is no relevance in having a subsidiary for the
purpose.
today.
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