Canara Bank allots over 16.73 crore shares in Rs 2,500 crore QIP

Canara Bank, India's third largest PSU lender (File image)

State-run Canara Bank on Tuesday said it has approved allotment of over 16.73 crore shares in the Rs 2,500 crore qualified institutions placement (QIP) that closed a day earlier.

The QIP opened on August 17 and closed on August 23, 2021.

The sub-committee of the board, capital planning process of the board of directors of the bank, at its meeting held on August 24, 2021, approved the allotment of 16,73,92,032 equity shares to eligible qualified institutional buyers at an issue price of Rs 149.35 per equity share, aggregating up to Rs 2,500 crore, Canara Bank said in a regulatory filing.

With this, the paid-up equity share capital of the bank stands increased to Rs 1,814.13 crore from Rs 1,646.74 crore, it said.

A total of seven investors have been allotted more than 5 percent of the equity offered in the QIP issue, said the Bengaluru-based lender.

LIC subscribed to 15.91 percent; BNP Paribas Arbitrage 12.55 percent; Societe Generale 7.97 percent; Indian Bank and ICICI Prudential Life Insurance - 6.37 percent each.

Morgan Stanley Asia (Singapore) Pte-ODI bought 6.16 percent of the shares issued in QIP and Volrado Venture Partners Fund II 6.05 percent.

Canara Bank stock traded at Rs 154.80 apiece on BSE, up by 1.31 percent from its previous close.