Bank of Punjab Plans Rs30 Billion Share Issue to Punjab Govt

In a regulatory filing with the Pakistan Stock Exchange on Monday, the Bank of Punjab disclosed plans to execute a major equity subscription arrangement with the provincial government of Punjab. The proposal involves issuing ordinary shares worth up to Rs30 billion without offering right shares to existing public shareholders.

The strategic share allotment is structured to occur in two distinct phases over the coming years. According to the notice shared by the lender, the provincial administration is expected to subscribe to an initial tranche of up to Rs20 billion by December 31, 2026. The remaining portion of the equity capital will be finalized in a second tranche deadline set for June 30, 2027.

Under the terms approved by the lender's board of directors, the transaction establishes a baseline pricing mechanism for the share offering. The ordinary shares have been assigned a base benchmark price of Rs38.20 each. However, if the bank's market equity valuation on the PSX trades higher than this threshold at the precise time of issuance, the price will automatically adjust to match the prevailing market rate alongside a 5 percent premium.

Execution of the transaction remains conditional upon securing mandatory approvals from regulatory authorities, corporate bodies, and the bank's equity shareholders. Reports from Business Recorder highlight that the commercial bank aims to reinforce its structural capital base through this targeted non-rights equity issuance over the multi-year timeline.