Canara Bank set floor price for QIP

Canara Bank set floor price for QIP

Shares of Canara Bank rallied nearly 8% in Tuesday’s trade after the bank set a floor price of Rs 103.50 per share for its proposed Rs 7,000 crore qualified institutional placement (QIP).
The state-owned lender had received shareholders’ nod in its annual general meeting, held in August, for raising up to Rs 2,000 crore by way of QIP.
The sub-committee of the board — Capital Planning Process of the bank, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share. The floor price is a 11.84% discount to the bank’s closing price on NSE on Monday.
A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, Dec. 10, 2020 to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP.
Canara intends to utilize the QIP proceeds towards augmenting its Tier I Capital to support growth plans and to enhance the business; and/ or,
general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by our Board or its duly constituted committee.
Investment banks ICICI Securities, Axis Capital, IDBI Capital, JM Financial and SBI Capital Markets are managing the share sale.

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