Money & Banking

Canara Bank raises Rs 1,993 crore through QIP

Our Bureaus Mumbai/Bangalore | Updated on March 16, 2011 Published on March 16, 2011

Canara Bank has raised Rs 1,993 crore through a qualified institutional placement (QIP) issue, the bank said in an announcement on the Bombay Stock Exchange, on Wednesday. The price of the QIP issue was Rs 604 per share, said the bank.

Following the QIP issue the paid-up capital of the bank will be increased to Rs 443 crore. The government holding in the bank would continue to remain at Rs 300 crore, the BSE announcement said.

Insurance companies, mutual funds and foreign institutional investors were the main subscribers in the QIP issue. The issue was priced at a 2.75 per cent discount to the market price.

“The QIP is to fund future growth and meet Basel III requirements,” said Mr S. Raman, Chairman & Managing Director, Canara Bank. Following the QIP, the Government's stake in the bank comes down to 67.72 per cent from 73.17 per cent.

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Published on March 16, 2011
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