Canara Bank raises Rs 2,000 cr via QIP; LIC emerges as largest investor

State-owned Canara Bank on Friday said it has successfully raised Rs 2,000 crore equity capital by issuing over 19 crore shares to eligible investors.

LIC emerged as the largest investor in the bank's qualified institutional placement (QIP) issue.

The subcommittee of the board at its meeting held today (December 11, 2020), approved allotment of 19,32,36,714 equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 103.50 per equity share, aggregating up to Rs 2,000 crore, Canara Bank said in a regulatory filing.

The QIP had opened on December 7 and closed on December 10.

Among the allottees - who were allotted more than 5 per cent of the total equity shares offered in the issue - include Life Insurance Corporation (25 per cent), BNP Paribas Arbitrage (9.11 per cent), Nippon Life India Trustee Ltd (8.81 per cent), Societe Generale (7.91 per cent) and Kuber India Fund (6.16 per cent).

"Pursuant to the allotment of equity shares in the QIP, the paid-up equity share capital of the bank stands increased from Rs 1,453.50 crore to Rs 1,646.74 crore comprising of 1,64,67,38,220 equity shares of the face value of Rs 10 each," Canara Bank said.

Shares of the bank closed at Rs 125.25 apiece on BSE, up 2.24 per cent from the previous close.