The Bank of Punjab (BoP) is all set to acquire a 100 percent stake in Punjab Capital Securities (Pvt.) Limited and its subsidiary, with an overall investment of Rs. 300 million.
The bank has been granted permission for the acquisition by the State Bank of Pakistan (SBP) and it has also received a green signal from its board of directors. Among the regulatory bodies, the approval of the Securities & Exchange Commission of Pakistan (SECP) is still pending before the bank can proceed with the transaction.
Punjab Capital Securities (Pvt.) Limited was incorporated under the Companies Ordinance, 2016 in November as a private limited company and is a wholly-owned subsidiary of First Punjab Modaraba Limited, which in turn is the subsidiary of Punjab Modaraba Services Limited, hence The Bank of Punjab is its ultimate parent company. Punjab Capital Securities Limited is engaged in the business of brokerage services, portfolio management, and consultancy services.
The bank will utilize the amount of investment for acquiring the issued ordinary shares of the subsidiary, and an equity injection in the post-acquisition phase to boost the operations of the financial sector.
The major objective for this acquisition is to leverage business growth in both Islamic and conventional means of the business of the subsidiary through direct investment.
