Canara Bank to raise Rs 570 cr by issuing 1.39 cr fresh shares

State-owned Canara Bank today said it will raise Rs 570 crore through preferential allotment of shares to the government to fund its business growth.
The issue price for the preferential allotment would not be less than Rs 408.95 per share of the face value of Rs 10 each, Canara Bank said in a statement.
Shares of the bank closed at Rs 408 per unit, up 3.66 per cent on the BSE.
The bank would issue 1.39 crore fresh shares to be alloted on preferential basis to the government of India.
Currently, the government owns 60 per cent in the bank. Post allotment, the holding would go up to 60.91 per cent.

The objective of the issuance is to augment Tier I capital of the bank, it said, adding, the capital raised would be utilised to improve the capital adequacy and to fund the general business needs of the bank.

General meeting for taking shareholders nod for preferential allotment of shares will be held on March 21.
Meanwhile, Dena Bank said it has fixed an issue price of Rs 60 per share for raising Rs 140 crore.
The bank will be able to create, offer issue and allot 2.33 crore shares to the government of India, Dena Bank said in a filing on the BSE.

In another filing, Repco Home Finance said it plans to raise Rs 100 crore by mode of private placement.