Canara Bank to issue shares to govt in lieu of Rs 6,571-cr capital infusion

The shareholding of the government in the bank will go up to 78.52% after the issue, from 70.62% currently.

State-owned Canara Bank on Wednesday said it will issue shares on preferential basis to the government in lieu of a capital infusion of Rs 6,571 crore.

"The bank proposes to issue 27,69,88,576 equity shares at an issue price of Rs 237.23 per share in respect of preferential issue of shares to government, the promoters of the bank, against their capital contribution aggregating to Rs 6,571 crore by way of special resolution," it said in a regulatory filing.

The shareholding of the government in the bank will go up to 78.52 per cent after the issue, from 70.62 per cent currently.

Shares of Canara Bank closed 2.59 per cent up at Rs 200.15 apiece on the BSE.