Punjab and Sind Bank on Monday announced its intention to come out with an initial public offering (IPO), likely to hit the market in June or July this year, aimed at raising around Rs. 500 crore for business expansion.

Addressing a press conference here, Chairman G. S. Vedi said the bank was in advanced stage of preparations for launching the IPO. “We understand that the government is actively considering the proposal. We hope to launch it by June-end or first week of July,” Mr. Vedi said.

With the launch of the IPO, the government's stake in the bank will come down to 82 per cent from 100 per cent. The funds raised will be utilised to expand the bank's business.

“We will file the red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI) by this month-end or the first week of the next month,” he said. The bank targets to grow by at least 30 per cent and touch the total business of over Rs. 1-lakh crore this financial year.

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