Canara Bank launches Rs 2,000 crore QIP; sets Floor Price of Rs 103.50 per share

Public Sector lender Canara Bank on Monday evening said it has launched a qualified institutional placement (QIP) to raise funds from institutional investors. The bank seeks to raise up to Rs 2,000 crore through the QIP.

The lender has set a floor price of Rs 103.50 per share for the share sale. The floor price is at 11.84% discount to the bank's closing price of Rs 117.50 on NSE on Monday.

The Canara Bank had received shareholders' nod in its annual general meeting, held in August, for raising up to Rs 2,000 crore by way of QIP.

The sub-committee of the board — Capital Planning Process of the bank, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share, Canara Bank said in a regulatory filing.

"A meeting of the sub-committee of the board-Capital Planning Process of the board of directors of the bank is scheduled to be held on Thursday, December 10, 2020, to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP," the bank said.