Canara Bank closes QIP by raising Rs 2,500 cr equity capital

State-run Canara Bank on Wednesday announced it had garnered a total of Rs 2,500 crore equity capital through Qualified Institutional Placement (QIP). The QIP had opened on August 17 and closed on August 23, 2021.

The bank had launched the QIP last week, setting the floor price at Rs 155.58 per equity share. The QIP was fully subscribed and saw a strong response from foreign as well as from domestic Qualified Institutional Buyers (QIBs), the bank said in a statement.

The QIP witnessed a well-diversified representation and demand from across the world. Moreover, the capital will enable the bank to improve the CET ratio as well as support further asset growth.

Earlier on Tuesday, the bank said it had approved the allotment of over 16.73 crore shares in the Rs 2,500 crore QIP. During the meeting held on the same day, the sub-committee of the board, capital planning process of the board of directors of the bank approved the allotment of 16,73,92,032 equity shares to eligible qualified institutional buyers at an issue price of Rs 149.35 per equity share, aggregating up to Rs 2,500 crore.

It further said that with this approval, the paid-up equity share capital of the bank stands increased to Rs 1,814.13 crore from Rs 1,646.74 crore.

Canara Bank’s last issuance was in December 2020, which was also fully subscribed. Its stock traded at Rs 154.80 apiece on BSE, up by 1.31 per cent from its previous close.

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Also Read: Canara Bank's QIP issue worth Rs 2,500 cr opens; floor price set at Rs 155.58 per share