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The board of directors of Karnataka Bank, which met on Monday, has decided to issue two shares for every five shares held on rights basis at a price of Rs 85 a share, including the premium of Rs 75 a share.
Speaking to Business Line after the board meeting, Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer, said: “We have fixed the price at Rs 85.”
Asked about the record date, he said it will be decided later.
The bank hopes to complete the process by early March.
It may be mentioned here that the September 9 extraordinary general meeting of shareholders of the bank had approved a resolution to issue two equity shares for every five equity shares held on rights basis at a price not exceeding Rs 100 a share, including the premium.
Its 84th annual general meeting on July 12, 2008 had approved the issue of equity shares of the bank in the ratio of one equity share for every five equity shares at a price not exceeding Rs 100 a share on rights basis. However, the bank came out with issue of equity shares through QIP in the subsequent year and issue of shares on rights basis was not taken up.
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