Jammu & Kashmir Bank shares climbed 12% today. Here's why

Shares of Jammu & Kashmir Bank Ltd (J&K Bank) climbed 12 per cent in Tuesday's trade after the bank launched its Rs 740 crore qualified institutional placement  (QIP) and said a meeting of its Capital Issuance Committee is scheduled for December 14  to consider and approve the issue price, including a discount, if any,  for the equity shares to be allotted to qualified institutional buyers.

The issue price, J&K Bank said, would be determined by the lender in consultation with the book running lead

managers appointed for the QIP issue. The QIP opened on December 11, with the J&K Bank approving the floor price of the QIP at Rs 112.66 per share. The lender had suggested that it would, at its discretion, offer a discount of not more than 5 per cent on the floor price.

With the rally, the stock hit a high of Rs 139.95 on BSE, up 11.87 per cent.

"Pursuant to Regulation 29(1) (d) of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please be informed that a meeting of the Capital Issuance Committee is scheduled to be held on December 14, 2023 to, inter alia, consider and approve the issue price, including a discount, if any thereto as permitted under the SEBI ICDR Regulations, for the Equity Shares to be allotted to Qualified Institutional Buyers, pursuant to the issue," the bank said on Monday.

In a separate filing to stock exchanges, the bank had said: "We further wish to inform you that the ‘Relevant Date’ for the purpose of the QIP, in terms of Regulation 171(b)(i) of the SEBI ICDR Regulations, is December 11, 2023 and accordingly the floor price in respect of the aforesaid QIP, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 112.66 per Equity Share. Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and through special resolution passed by the shareholders of the Bank in the annual general meeting held on August 24, 2023, the bank may at its discretion offer a discount of not more than 5% on the floor price so calculated for the QIP," it said.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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