State owned lender Canara Bank said that it has launched a so-called qualified institutional placement (QIP) to raise funds from institutional investors.
The Bank had got approval of its Shareholders by way of a Special Resolution at the Annual General Meeting held on August 10, 2020 to raise Rs2000cr via QIP.
About issue
The company have to raise Rs2000 crore.
The base issue size is of Rs1,000 crore with an option to upsize the deal by another Rs1000 crore
Floor Price
The company has set a floor price of Rs103.5 per share, as per Sebi formula
Intermediaries
Investment banks ICICI Securities, Axis Capital, IDBI Capital, JM Financial and SBI Capital Markets are the intermediaries for managing the share sale.
Comment from Bank Authorities
Subject to compliance with applicable laws, our Bank intends to utilize the Net Proceeds for (i) towards augmenting our Bank’s Tier I Capital to support growth plans and to enhance the business of our Bank; and/ or,
(ii) general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by our Board or its duly constituted committee.
Stock Market Impact
Shares of Canara Bank on Tuesday surged nearly 8%.
The stock jumped 7.52% to Rs 126.40 on the benchmark S&P BSE Sensex and zoomed 7.70% to Rs 126.45 NSE Nifty 50 index.
The Nifty 50 index rose 0.46% to 13,416.8 by 0444 GMT and looked set to extend gains for a sixth day and Sensex was up 0.53% at 45,668.37.
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