Canara Bank approves allotment of 16.73 crore shares in Rs 2,500 crore QIP

Canara Bank on Tuesday, August 24, said it has approved allotment of over 16.73 crore shares in the Rs 2,500 crore qualified institutions placement (QIP) that closed on August 23, which was opened from August 17. 

Canara Bank said in a regulatory filing that during the meeting held on Tuesday, the sub-committee of the board, capital planning process of the board of directors of the bank approved the allotment of 16,73,92,032 equity shares to eligible qualified institutional buyers at an issue price of Rs 149.35 per equity share, aggregating up to Rs 2,500 crore. It further said that with this approval, the paid-up equity share capital of the bank stands increased to Rs 1,814.13 crore from Rs 1,646.74 crore. 

The Bengaluru-based lender said a total of seven investors have been allotted more than 5 percent of the equity offering in the QIP issue. 

LIC subscribed to 15.91 percent; BNP Paribas Arbitrage 12.55 percent; Societe Generale 7.97 percent; Indian Bank and ICICI Prudential Life Insurance - 6.37 percent each.

Morgan Stanley Asia (Singapore) Pte-ODI bought 6.16 percent of the shares issued in QIP and Volrado Venture Partners Fund II 6.05 percent.

Canara Bank stock traded at Rs 154.80 apiece on BSE, up by 1.31 percent from its previous close

In a recent update, according to the BSE data, ace investor Rakesh Jhunjhunwala has picked a 1.59 percent stake in state-run Canara Bank. As per the shareholding statement issued on August 24, the Big Bull has scooped up 2,88,50,000 shares or 1.59 percent in the lender.

About Canara Bank

Canara Bank was founded by Ammembal Subba Rao Pai in July 1906, at Mangalore, Karnataka. The Bank stated that it has gone through various phases of growth trajectory over hundred years of its existence. According to the Bank, post nationalization in the year 1969, the growth of Canara Bank was phenomenal, attaining the status of a national level player in terms of geographical reach and clientele segments. In June 2006, the Bank completed a century of operation in the Indian banking industry. 

As of June 2021, Canara Bank services over 10.55 crore customers through a network of 9877 branches and 13124 ATMs/Recycler spread across all Indian states and Union Territories.

With PTI inputs

Image: PTI