Money & Banking

Karnataka Bank to raise capital through QIP, issue bonus shares

Our Bureau Mangaluru | Updated on January 27, 2020

The board of Karnataka Bank, which met on Monday, has decided to issue bonus shares and raise capital funds through QIP (Qualified Institutions Placement).

The bank informed the stock exchanges on Monday that the board has recommended the issue of bonus shares in the proportion of one equity share of ₹10 each for every 10 equity shares held by the shareholders of the bank as on the record date as may be determined by the board / committee at a later date.

The bonus share is estimated to be credited within two months from the date of board approval, that is March 26.

The pre-bonus paid-up share capital of the bank is ₹282.60 crore divided into 28,26,08,808 equity shares of ₹10 each. The post-bonus paid-up share capital will be ₹310.86 crore divided into 31,08,69,688 equity shares of ₹10 each. The bank informed the stock exchanges that the amount required for implementing the bonus issue is ₹28.26 crore.

A balance of ₹1283.96 crore is available under the Securities Premium Account of the bank as on March 31, 2019, and a portion of this fund will be utilised for the purpose of bonus issue, it said.

The bank also informed the stock exchanges that the board has consented to create, offer, issue and allot equity shares having face value of ₹10 each to Qualified Institutional Buyers (QIBs). The total number of equity shares to be issued shall not exceed 15 crore equity shares of the bank, it said.

The board of directors, at its meeting on January 27, approved the above options, subject to the approval of shareholders through postal ballot / e-voting.

Published on January 27, 2020

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