Karnataka Bank to raise up to ₹ 1,500 crores

The Board of Directors of Karnataka Bank, in its meeting held today, have approved raising capital up to ₹ 1,500 crores, in one or more tranches by way to preferential issue / rights issue / QIP or any other permissible mode, subject to such necessary regulatory / statutory approvals as the case maybe and shareholders' approval.

Further, out of which as part of tranche 1, the Board has approved the issuance of up to 3,34,00,132 equity shares of face value of ₹ 10/- each, to HDFC Life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Quant Mutual Fund, Bharti AXA Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited ("Proposed Allottees"), at a price of ₹ 239.52/- per equity share (including premium of ₹ 229.52/- per share), amounting to an aggregate of up to ₹ 800 crores (Rupees eight hundred crores only) on a preferential basis, subject to approval of shareholders of the Bank and other regulatory approvals as may be required.

The proposed issue will help the bank strengthen its' 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.

Mr. Srikrishnan H., MD & CEO of Karnataka Bank, stated, "This capital infusion marks a pivotal moment in our journey. It reflects our commitment to fortify our position in the market and better serve our customers. We are confident that this strategic step aligns with our vision for growth and stability."

Mr. Sekhar Rao, Executive Director of Karnataka Bank, stated, "Our journey of growth is propelled by the strategic capital raise, fueling our ambitions to expand our reach, embrace digital transformation and enhance our technical capabilities, support partnerships and deliver value to all stakeholders."

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

Shares of The Karnataka Bank Limited was last trading in BSE at Rs. 241.70 as compared to the previous close of Rs. 239.95. The total number of shares traded during the day was 263513 in over 3883 trades.

The stock hit an intraday high of Rs. 243.55 and intraday low of 233.45. The net turnover during the day was Rs. 62955626.00.

Source : Equity Bulls

Keywords

TheKarnatakaBank INE614B01018 FundRaising PreferentialIssue RightsIssue QIP