Canara Bank drops after fixing preferential allotment price

Canara Bank fell 2.08% to Rs 393.55 at 15:22 IST on BSE after the bank said it has fixed a minimum issue price of Rs 408.95 per share for the proposed preferential allotment of shares to Government of India.

The announcement was made during market hours today, 26 February 2015.

Meanwhile, the S&P BSE Sensex was down 247.64 points or 0.85% at 28,760.35.

On BSE, so far 1.33 lakh shares were traded in the counter as against average daily volume of 2.38 lakh shares in the past one quarter.

The stock hit a high of Rs 402.70 and a low of Rs 392.15 so far during the day. The stock had hit a 52-week low of Rs 211.05 on 26 February 2014. The stock had hit a 52-week high of Rs 498 on 9 June 2014.

The large-cap bank has equity capital of Rs 461.26 crore. Face value per share is Rs 10.

Canara Bank said it has fixed a minimum Issue Price at Rs 408.95 per share for the proposed issue of equity shares to Government of India (GoI) by way of preferential allotment. Based on the issue price of Rs 408.95 per share, number of shares to be issued and allotted to GoI works out to 1.39 crore shares, Canara Bank said.

Canara Bank had on 13 February 2015 said that its board approved raising of equity capital of the bank by way of preferential allotment of equity shares in favour of GoI amounting to Rs 570 crore.

Canara Bank's net profit rose 60.2% to Rs 655.97 crore on 11.8% growth in total income to Rs 12227.86 crore in Q3 December 2014 over Q3 December 2013.

The Government of India held 69% stake in Canara Bank (as per the shareholding pattern as on 31 December 2014).

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