PMBL rights issue oversubscribed

The one for one rihgts issue by People’s Merchant Bank Limited (PMBL) was over subscribed on December 5, PMBL said in a statement.

A total of 12.5 million ordinary shares were offered through this rights issue, at an issue price of Rs. 20 per share (inclusive of a premium of Rs. 10 per share). PMBL raised funds totalling Rs. 250 million from this rights issue.

“Funds sourced from the rights issue will be utilized mainly to augment the bank’s lending portfolio, which has grown by 40% in the last 12 months. PMBL’s lending portfolio consists of leasing, hire purchase and trade finance (bills discounting) & short term loans. Further, the proceeds of the issue will also be used for real estate projects, which consist of housing projects and land sales,” it said.