Punjab National Bank (PNB), one of the leading public sector lenders in India, has issued and allocated 109.04 million shares to the Government of India (GOI) at a price of Rs. 158.84 a equity share.

The bank said, "Consequent upon receipt of capital funds to the tune of Rs. 17.32 billion from the Government of India on Sep 29, 2015, the bank has issued and allotted 109.04 equity shares of face value of Rs. 2 each at a premium of Rs. 156.84."

The bank has issued shares on preferential basis, in accordance with Regulation 76(1) of SEBI ICDR regulations," it added.

Shares of the company declined Rs 1.85, or 1.37%, to settle at Rs 133.45. The total volume of shares traded was 620,235 at the BSE (Wednesday).