LAHORE: The Punjab government has approved a huge capital injection of Rs 30 billion for the Bank of Punjab. The board of the BOP gave a formal approval for the capital injection.
The decision came during the bank’s 334th Emergent Board Meeting held on August 7. The bank disclosed the development in a notification sent to the Pakistan Stock Exchange to fulfill the regulatory requirement.
Under the proposal, the Punjab government will directly subscribe to newly issued ordinary shares. The transaction will bypass a conventional rights issue.
The bank plans to complete the capital injection in two phases. It will issue shares worth up to Rs20 billion by December 31, 2026.
The remaining amount will follow by June 30, 2027. The move represents one of the largest capital injections in the bank’s history.
Share Issue Price Set at Rs38.20
The Bank of Punjab has fixed the issue price at Rs38.20 per ordinary share. However, the pricing mechanism includes a market-linked adjustment.
If the bank’s market price exceeds Rs38.20 when the shares are issued, the government will pay a five percent premium over the prevailing market price.
However, the proposed transaction has not received final approval. The plan still requires approval from shareholders at an Extraordinary General Meeting.
Furthermore, the State Bank of Pakistan and Securities and Exchange Commission of Pakistan must also approve the transaction.
The Bank of Punjab said it would provide further updates to the Pakistan Stock Exchange as the process progresses.
