Canara Bank shares jump 6% on capital raising plans

8-12-2020

Shares of Canara Bank jumped over 6 per cent on Tuesday after the bank revealed its plan to raise capital to the tune of Rs 2,000 crore. At around 11:55 am, shares of Canara Bank were trading over 6 per cent at nearly Rs 125. Earlier in the day, the stock was trading higher by nearly 6.5 per cent at Rs 125.20. It touched an intraday high of Rs 126.40. The development comes after the bank said it set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore. It may be noted that the bank had earlier got a nod from shareholders for the plan at its annual genre meeting held in August. It had proposed raising Rs 2,000 crore through a QIP. Canara Bank said in a regulatory filing that the sub-committee of the board, Capital Planning Process of the bank, authorised opening of the QIP issue at an approved floor price of Rs 103.50 per equity share. This was after a meeting was held on December 7. A fresh meeting is scheduled to be held on December 10, 2020 to consider and determine the issue price for the equity shares as well as the number of shares to be allowed to qualified institutional buyers. �A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, December 10, 2020 to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP," the bank said.