BUSINESS

Canara Bank Launches QIP to Raise up to Rs 2,000 Cr


State-owned public sector lender Canara Bank on Monday evening said that it has launched qualified institutional placement (QIP) for raising funds from institutional investors worth Rs 2,000 crore.
Earlier, the bank’s board had approved the proposal to raise additional equity share capital of up to Rs 2,000 crore including securities premium through QIP. The equity shares will be having a face value of Rs 10 per share and will be introduced in one or more tranches with a premium, decided as per the applicable guidelines/regulations, according to the filing.
“The base issue size is of Rs 1,000 crore with an option to upsize the deal by another Rs 1000 crore,” said a people directly aware of the development. The bank has set up a floor price of Rs 103.5 per share for sale at a discount of 11.84 per cent to its closing share price on NSE on Monday, as per the SEBI formula. The funds raised will be utilized to support the growth and business plans of the banks, and to meet general and future working capital needs.
ICICI Securities, Axis Capital, JM Financial, IDBI Capital, and SBI Capital Markets are the investment bankers hired to manage the share sale.

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