Canara Bank's QIP issue priced at Rs.604

The sub-committee of the Board of Directors of Canara Bank at its meeting held on March 11, 2011 determined March 11, 2011 to be the issue closing date and Rs.604 per equity share to be the issue price pursuant to the qualified institutions placement of the equity shares under the provisions of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 ("SEBI ICDR Regulations") to certain eligible qualified institutional buyers as defined under 2(1)(zd) of the SEBI ICDR Regulations (the "Issue").

The sub-committee of the Board of Directors had also approved the placement document dated March 11, 2011 in respect of the Issue. The Bank vide its resolution dated March 15, 2011 passed by the sub-committee of the Board of Directors has confirmed the issue and allotment of 3,30,00,000 equity shares of face value of Rs. 10 each to raise aggregate proceeds of Rs. 1,993.20 crores.

Consequently, the paid up capital of the Bank will be increased to Rs. 443 crores. The Government holdings continue to remain at Rs. 300 crores constituting 67.72% of the paid up capital of the Bank.

The stock was trading at Rs.632, up by Rs.22.45 or 3.68%. The stock hit an intraday high of Rs.633 and low of Rs.615.

The total traded quantity was 0.32 lakhs compared to 2 week average of 0.89 lakhs.

Source : Equity Bulls

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