Canara Bank shares in news as lender raises $300 million

Shares of state-owned lender Canara Bank are in news today after the firm said it has mobilised $300 million via the IFSC Banking Unit. The net proceeds from the issue of the notes will be applied by the issuer's IFSC Banking Unit at Gandhinagar towards the general corporate purposes. 

Canara Bank shares ended 2.47% lower at Rs 108.60 on Wednesday against the previous close of Rs  111.35. Market cap of the lender fell to Rs 98,507 crore on BSE. 

Total 9.58 lakh shares of the firm changed hands amounting to a turnover of Rs 10.39 crore. 

Canara Bank shares have a one-year beta of 1.5, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Canara Bank stands at 43, signaling it's trading neither in the overbought nor in the overtrading zone.

The bonds with maturity of 5 years carry a coupon rate of 4.896 to be paid semi annually, it said.

Canara Bank MD and CEO K Satyanarayana Raju said, "We are delighted on the successful launch and pricing of this transaction, which enabled us to achieve a 30-bps tightening from the initial price guidance to final price guidance." 

"The issuance was widely subscribed by investors across Asia, Middle East and Europe demonstrating the strong confidence in the Canara Bank's credit, he said.