Karnataka Bank approves allotment of equity share capital of ₹800 cr on a preferential basis

The Committee of Directors of the board of Karnataka Bank has approved an allotment of 3,34,00,132 equity shares of face value of ₹10 each to HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company , Quant Mutual Fund, Bharti AXA Life Insurance Company and Bajaj Allianz General Insurance Company at a price of ₹239.52 per equity share (including premium of ₹229.52 per equity share), amounting to an aggregate of ₹799,99,99,616.64 on a preferential basis.

The bank received 99.79 per cent favourable votes from its shareholders for this preferential issue.

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of Karnataka Bank, a media statement said, “We are happy to have completed a successful capital raise through preferential allotment of ₹800 crore to five marquee institutional investors. This is a major step in our transformation journey providing us the growth capital that will facilitate all our developmental activities.”

Sekhar Rao, Executive Director of Karnataka Bank, said this capital raise of ₹800 crore through preferential issue of shares is a significant milestone in the bank’s journey towards growth and will help fortify its position in the market, enabling it to provide better services, expand digital offerings, and maintaining its commitment to excellence. “The capital infusion will bolster Karnataka Bank’s financial position, providing the necessary resources to innovate and meet the evolving demands of the market. This development is a testament to the bank’s unwavering dedication to excellence and the confidence it has earned among its stakeholders,” he said.

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