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

Canara Bank's authorised QIP (qualified institutional placement) issue amounting up to Rs 2,500 crore opened today. The bank's board has approved a floor price of Rs 155.58 per equity share for the QIP.

The bank's board approved and adopted the preliminary placement document and the application form in connection with the QIP on August 17, Canara Bank told stock exchanges in a statement.

"The 'Relevant Date' for the purpose of the QIP, in terms of Regulation 171 (a)(i) of the SEBI ICDR Regulations,  is August 17, 2021 and accordingly the floor price in respect of the aforesaid QIP, based on the pricing formula as  prescribed under Regulation 176( I) of the SEBI ICDR Regulations is Rs 155.58 per Equity Share," the public sector bank said.

Canara Bank said it may, at its discretion, offer a discount of not more than 5 per cent on  the floor price calculated for the QIP. Canara Bank's net profit grew 190 per cent to Rs 1,177 crore during April-June quarter of the current fiscal year. The bank's profit for the fiscal year 2020-21 stood at Rs 2,557 crore as against a net loss of Rs 5,838 crore in FY20.

Shares of Canara Bank closed at Rs 152.30, Rs 5.15 or 3.27 per cent lower, on the NSE on Tuesday.

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