Karnataka Bank's Rights issue oversubscribed

Mangaluru based Karnataka Bank Ltd has successfully completed the rights issue of shares in the ratio of 1(ONE) share for every 2(TWO) shares held on the record date at a price of Rs 70 per share including premium of Rs 60 per share. The rights issue which had opened for subscription on November 7, 2016, closed on November 28, 2016.

The issue received overwhelming response from the shareholders / investors with an overall subscription reaching 185.52%. The shares have been allotted on December 8, 2016 and commenced trading on the BSE Ltd and National Stock Exchange of India Ltd (NSE) w e f December 14, 2016.

Thanking the shareholders / investors for reposing the confidence on the Bank, Sri P Jayarama Bhat informed that with the completion of Rights issue Bank has augmented its capital funds to the extent of Rs 658.96 crore and the capital adequacy ratio has improved further paving the way for further expansion of business in the coming years.

Shares of KARNATAKA BANK LTD. was last trading in BSE at Rs.113 as compared to the previous close of Rs. 110.3. The total number of shares traded during the day was 273223 in over 3866 trades.

The stock hit an intraday high of Rs. 114.25 and intraday low of 109. The net turnover during the day was Rs. 30787731.

Source : Equity Bulls

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