Jammu and Kashmir Bank shares surged up to 12 percent on December 12 after the bank launched its Rs 740 crore qualified institutional placement (QIP). The lender aims to raise Rs 750 crore from the issue. This move comes as part of the company's strategic efforts to bolster its financial position and fuel growth initiatives.
The decision to raise funds through a QIP was formally approved by the J&K Bank board earlier this year in July. The lender has set the floor price for the issue at Rs 112.66 per share, reflecting a discount of 10.02 percent from the company's previous closing price of Rs 125.20 on the National Stock Exchange (NSE).
A meeting of the Capital Issuance Committee on December 11 approved the issue price, the lender informed in a regulatory filing.
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At 2:46 pm, J&K Bank shares were trading 6 percent higher at Rs 133.50 on the National Stock Exchange (NSE).
"The Bank may at its discretion offer a discount of not more than 5% on the floor price so calculated for the QIP. The Issue price will be determined by the Bank in consultation with the book-running lead managers appointed for the QIP, " J&K Bank said.
A Qualified Institutional Placement (QIP) is a process through which a listed company in India can raise capital by issuing securities to qualified institutional buyers (QIBs) without the need for a public offering.
J&K Bank shares surged 8 percent on December 11 to close at Rs 124 on NSE. The multibagger stock has doubled investors' money so far in 2023. In the last six months, J&K Bank shares have surged nearly 120 percent, outperforming benchmark Nifty 50 which has risen 12.8 percent during this period.
Also Read | Jammu & Kashmir Bank Q2 results: Net profit up 56.5% at Rs 381 crore
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