Canara Bank is planning to allot up to Rs Rs 1,124 crore at Rs 207 per share via rights issue. Sharing details of the issue with CNBC-TV18 Managing Director & CEO Rakesh Sharma said roughly Rs 745 crore of this will be from the government and balance from other shareholders.
Sharma said the bank picked the rights issue over preferential allotment to government so that minority shareholders are also rewarded.
He is confident the issue will see a good response from minority shareholders as it is at nearly 33 percent discount to market price.
The issue will increase the total numbers of shares by roughly 10 percent.
Post issue, capital adequacy of the Tier-1 capital will improve by about 35 basis points from 9.01 percent as on December 31, he said.Watch video for more...
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