Canara Bank stock surges radically post QIP approval of Rs 2000 crore

In a historic raise, Canara Bank, a PSU bank recorded a 7% surge in its stock price to Rs 141 in Tuesday’s trade, thus setting the floor ahead of its Qualified Institutional Placements (QIP). It has a proposed a Rs 7000 crore for its QIP.

After receiving the shareholder’s approval for raising Rs 2000 crore by way of QIP at the general meeting held in August, the stock surged 7.36 percent approximately to a high of Rs 126.20 on the Bombay Stock Exchange. Canara Bank’s shares are currently trading at Rs 131.95 on the Bombay Stock Exchange and Rs 132.25 at the National Stock Exchange, as recorded at 11:29 am IST.

“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,” Canara Bank said in a regulatory filing.

The floor price of the QIP is set at around Rs 103.5 per share which is at a discount to Monday’s closing price. The board is scheduled to meet again on December 10 to determine the final pricing and allotment of shares to institutional investors.

The market for Canara Bank opened at Rs 141.90 per share at the BSE against the previous close of Rs 136.80. Till now, it touched an intraday high of Rs 146 and an intraday low of Rs 131.

“A meeting of the sub-committee of the board-Capital Planning Process of the board of directors of the bank is scheduled to be held on Thursday, December 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,” the bank said.

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