Canara Bank gains on launching QIP issue

Canara Bank rose 2.88% to Rs 157.05 after the bank said its board's capital planning process committee has approved the opening of the qualified institutional placement (QIP) issue on 17 August 2021.

The floor price of the QIP issue is Rs 155.58 per equity share, the state-run lender said in a regulatory filing. The floor price is set at a premium of 1.92% to Tuesday's closing price of Rs 152.65 per share.

The issue committee of the bank's board is scheduled to be held on Monday, 23 August 2021, to consider and determine the issue price, including a discount, if any, for the equity shares to be allotted to eligible qualified institutional buyers, pursuant to the QIP issue. The bank may, at its discretion, offer a discount of not more than 5% on the floor price.

 

In its draft placement document filed with the bourses, the bank said that it intends to utilize the net proceeds towards augmenting its tier-I capital to support growth plans and to enhance the business of the bank or any other purposes, as may be permissible under the applicable law and approved by the board or its duly constituted committee.

Canara Bank is a public sector bank. The Government of India held 69.33% stake in the state-owned commercial bank as of 30 June 2021. The bank has 9,877 number of branches, out of which 3,047 are rural, 2,853 semi-urban, 1,973 urban & 2,004 metro along with 11,819 ATMs.

The public sector bank reported a 189% jump in standalone net profit to Rs 1177.47 crore on a 2.5% rise in total income to Rs 21,210.06 crore in Q1 FY22 over Q1 FY21.

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