PNB jumps over 9% to hit 52-week high. What’s driving the rally?
“The exchange is hereby informed that the bank has received approval of DIPAM, Ministry of Finance, Government of India for divestment of bank’s entire/part stake in UTI Asset Management Company Limited in single or multiple tranches subject to compliance of SEBI Regulations/other applicable regulatory guidelines,” PNB said in a BSE filing.
The bank, which holds a 15.22% stake in
, will divest its entire stake in the mutual fund company in single or multiple tranches for the realisation of gains on investment.
The timeline for making the divestment is yet to be finalized, the bank said.
At 10.30 am, the scrip was trading 9% higher at Rs 55.45 over its previous day’s closing price of Rs 50.80 per share. It hit a 52-week high of Rs 55.65 on BSE earlier in the day.
The stock has risen nearly 28% in the last one month, while it has surged 86% in the last six months.
Out of the 14 analysts covering the stock, only two have buy ratings while six have sell ratings, and another six have hold ratings. The average share price target of the stock signals a downside potential of 25% from the current market price.
The brokerage firm Emkay Global also has a sell call on Punjab National Bank with a target price of Rs 30.
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