The Board of Directors of Karnataka Bank Ltd has approved to raise equity capital for up to an amount of ₹1500 crore.

The bank informed stock exchanges on Friday evening that its board has agreed to raise equity capital up to ₹ 1500 crore in Indian or permitted foreign currency,through Qualified Institutional Placement, Preferential Issue, Rights Issue or any other permissible modes

The bank informed stock exchanges that the board has approved to issue, offer and allot over 3.3 crore equity shares to HDFC Life Insurance, Bajaj Allianz Life Insurance, Quant Mutual Fund, Bharti AXA Life Insurance, Bajaj Allianz General Insurance, at a price of ₹239.52 per equity share amounting to an aggregate of up to ₹800 crore on a preferential basis.

Board of directors of the bank has approved conducting a postal ballot to seek approval of shareholders for issuance of equity shares by way of preferential allotment on a private placement basis to proposed allottee(s).

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of of Karnataka Bank, a media statement said the proposed issue will help strengthen bank’s financial foundation for future growth.

The proceeds of this issue will be primarily used to meet the needs of the growing business of the bank, including long-term capital requirements and for general corporate purposes.

NovaaOne Capital, a SEBI-registered Merchant Banker, is acting as an exclusive financial advisor to the bank on this fund raise.