PNB share price: Following the announcement of a $7,500 crore fundraise by Punjab National Bank (PNB), the PSU stock saw buying interest during morning trades. PNB’s share price opened higher today at 96.40 and reached an intraday high of 96.55, a new 52-week high, on the NSE. Profit booking was soon triggered in this state-owned stock, and the shares retraced from their 52-week high and touched an intraday low of 94.80 per share.
However, stock market experts believe that these dips should be viewed as buying opportunities, as the PNB share price could rise to 110 per share in the near term.
PNB raises funds
PNB informed Indian stock market bourses about the fundraise move in an exchange filing on Thursday, saying, “Pursuant to Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Exchange is hereby informed that the Board of Directors of the Bank, in its meeting held today, has approved the proposal for raising of equity capital for an amount aggregating upto Rs. 7500 Crore in one or more tranches during FY 2024-25
Price target for PNB shares
Avinash Gorakshkar, Head of Research at Profitmart Securities, said of the triggers that led to the stock reaching a 52-week high, “PSU bank shares are in uptrend these days as market has gone bullish on banking and PSU stocks after recently held state assembly elections.” However, the fundraise move was the immediate catalyst for the PNB share price rally. The state-owned bank has decided to raise funds totaling 7,500 crore, indicating that credit growth will occur in the near to medium term.”
Sumeet Bagadia, Executive Director at Choice Broking, expects further upside in the PNB share price, saying, “PNB share price has taken strong base at 88 to 90 levels.” On the plus side, if the PSU stock remains above the 100 mark on a closing basis, it may soon reach 110 apiece levels. Those with PNB shares in their stock portfolio are advised to hold the scrip for the near term 110 while keeping their stop loss below 88.”
Sumeet Bagadia advised new investors to “continue to ‘buy on dips’ and begin accumulating PNB shares from current levels for a near-term target of 110 per share.” However, when entering a new position in the scrip, one must keep a strict stop loss below 88.”
