SECP approves BOP’s Rs20bn share issue to Punjab govt

October 29, 2026 (MLN): The Securities & Exchange Commission of Pakistan (SECP) has allowed The Bank of Punjab (PSX: BOP) to issue up to 523,560,209 ordinary shares worth up to Rs20bn, in the first tranche, to the Government of Punjab by way of other than right offer.

The issue price will be the higher of Rs38.20 or the prevailing market price increased by a 5% premium. The approval rests on the special resolution passed by the bank’s shareholders at the Extra Ordinary General Meeting held on September 8, 2026, and the information and documents submitted to the Commission.

The bank’s application is dated September 10, 2026, with subsequent correspondence dated October 23, 2026.

The approval carries several conditions. The shares must be issued only in book entry form within 60 days from the date of the Commission’s approval.

The bank must intimate the Commission and the securities exchange within seven days of the issuance.

The person to whom the shares are issued must retain the resulting shareholding, and the bank must submit a report to the Commission on the shares held in blocked status with the CDC account immediately after the issuance.

The approval is based on the documents and information submitted to the Commission. The Commission bears no responsibility for any express or implied agreement(s) executed between the issuer and the person(s) to whom shares are proposed to be issued.

The aforementioned information was disseminated through a notification to Exchange.

The issuance is part of a larger Rs30bn capital injection by the Punjab government. The bank’s Board of Directors approved the injection at its 334th Emergent meeting on August 7, 2026.

Under those terms, the government will subscribe to new ordinary shares in two tranches: up to Rs20bn by December 31, 2026, and the remaining balance by June 30, 2027.

BOP shares had been active ahead of the board decision. Over the three sessions of August 5, 6 and 7, the stock gained close to 9% on cumulative volume of roughly 158m shares, more than six times its ordinary three-day turnover.

Volume peaked at 66m shares on August 6, when the scrip closed at Rs36.00, and the stock touched an intraday high of Rs36.85 on August 7. On August 10, the day the board decision became public, the stock was trading at Rs35.75, about 6-7% below the Rs38.20 floor price.

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