The board of directors of Canara Bank subsidiary Can Fin Homes will seek approval from shareholders at the company's upcoming annual general meeting on July 18 to raise Rs 7,000 crore through a mix of debt securities and equity allotment to fund its business growth.
Canara Bank subsidiary Can Fin Homes plans to raise Rs 7,000 crore through a mix of debt securities and equity allotment to fund its business growth, meet the working capital requirement and repay debt.
Of this, Rs 6,000 crore will be raised by issuing non-convertible debentures (NCDs), while Rs 1,000 crore is to be mopped up through issuing equity shares or specialised securities.
The board of directors will seek approval from shareholders at the company's upcoming annual general meeting on July 18.
The company said in a regulatory filing that it "intends to offer or invite subscription of bonds or NCDs or tier II bonds, onshore or offshore, denominated Indian rupees or any foreign currency for cash up to an amount of Rs 6,000 crore only, on private placement basis for a period of one year from the AGM until conclusion of next AGM".
In order to issue NCDs, the prior consent of members is sought by way of special resolution, it added.
The board will also seek permission to issue and allot shares to domestic or overseas buyers, in one or more tranches, through private placement by way of qualified institutions placement (QIP) or preferential allotment to Canara Bank to raise up to Rs 1,000 crore.
Can Fin Homes said the proceeds from this issue will be utilised for business purposes, including exploring acquisition opportunities and general corporate purposes.Stock of Can Fin Homes closed 1.35 percent up at Rs 347.90 on BSE.