Canara Bank on Tuesday approved the opening of Qualified Institutional Placement (QIP) of equity shares of face value of Rs 10 each at a floor price of
Rs 155.58 per share. The bank is looking to raise Rs 2,500 crore through the QIP.
“The bank may at its discretion offer a discount of not more than 5 per cent on the floor price so calculated for the QIP,” Canara Bank told bourses.
The bank’s board of directors in May this year had approved a plan to raise Rs 9,000 crore for 2021-22 by way of equity and debt instruments. This included the QIP of Rs 2,500 crore, additional tier 1 bonds up to Rs 4,000 crore and additional tier 2 bonds of up to Rs 2,500 crore.
Canara Bank’s capital adequacy was at 13.36 per cent as of June 30, 2021 and the government held a 69.33 per cent stake in it.
A sub-committee of the board of directors of the bank will meet on August 23 to consider and determine the issue price for the equity shares as well as the number of shares allotted to QIP investors.
The bank’s scrip fell 3.05 per cent to Rs 152.65 on the BSE on Tuesday.
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