In a significant stride toward bolstering its financial strength, Karnataka Bank witnessed a substantial surge of nearly 6% in its stock value. This surge was ignited by the recent approval from the Committee of Directors of the Board. In their meeting held on Thursday, October 26, they greenlit the allotment of 3,34,00,132 equity shares, each with a face value of Rs 10, to prominent entities including HDFC Life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Quant Mutual Fund, Bharti AXA Life Insurance Company Limited, and Bajaj Allianz General Insurance Company Limited.
The allotment, set at a price of Rs 239.52 per equity share, which includes a premium of Rs 229.52 per equity share, resulted in a substantial aggregate of Rs 799,99,99,616.64. This preferential issue, met with an overwhelming 99.79% favorable vote from the bank’s shareholders, marks a pivotal step in Karnataka Bank’s growth trajectory.
Srikrishnan H, the Managing Director & CEO of Karnataka Bank, expressed his satisfaction, stating, “We are pleased to have successfully raised capital through a Pref Allotment of Rs 800 crores to 5 Marquee Institutional Investors. This infusion marks a significant milestone in our transformation journey, providing us with the essential growth capital to fuel our developmental initiatives.”
Echoing this sentiment, Sekhar Rao, the Executive Director of Karnataka Bank, emphasized, “This capital infusion of 800 crores via the preferential issue of shares stands as a noteworthy achievement in our pursuit of growth. It will fortify our market position, enabling us to enhance our services, expand our digital offerings, and uphold our commitment to excellence. This development underscores the bank’s steadfast dedication to excellence and the confidence it has garnered among its stakeholders.”
At 11:27 am the shares were trading 5.27% higher than previous close at ₹233.90