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State-owned Canara Bank’s Rs 1,124-crore rights issue will open on March 2 and the proceeds will be utilised to fund business growth.
The bank will issue over 5,42,99,105 equity shares of face value of Rs 10 each for cash at Rs 207 per scrip (including a premium) for an aggregate amount of up to Rs 1,123.99 crore to the existing investors.
The issue will open on March 2 and close on March 16, as per the offer document filed by the company with the Securities and Exchange Board of India (SEBI).
In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.
The issue is being managed by SBI Capital Markets Ltd.
Last September, the bank had given its approval to raise an amount not exceeding Rs 1,128 crore, including premium by way of rights issue, with the Government of India's contribution of Rs 748 crore and Rs 380 crore from public shareholders.
The Government currently holds 66.30 per cent stake in the bank. In case, the Government does not want to dilute its stake, it has to subscribe rights issue equivalent to its shareholding.
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