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Canara Bank jumps over 12% in 2 days on Rs 2,000 crore QIP launch

Canara Bank jumps over 12% in 2 days on Rs 2,000 crore QIP launch

Canara Bank jumps over 12% in 2 days on Rs 2,000 crore QIP launch
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By CNBCTV18.com Dec 8, 2020 1:23:52 PM IST (Updated)

The state-owned lender Canara Bank on Monday rallied over 12 percent in the past two trading sessions after it launched a Rs 2,000 crore qualified institutional placement (QIPs) to raise funds from the institutional investors.

Canara Bank shares have rallied over 12 percent in the past two trading sessions after the state-owned lender launched a Rs 2,000 crore qualified institutional placement (QIPs) to raise funds from the institutional investors.

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The public sector bank stock gained as much as 7.7 percent to Rs 126.45 per share on the NSE on Tuesday. At 10:47 am, the shares traded 6 percent higher to Rs 124.75. In fact, the stock has rallied over 12 percent in the last two days. In the past month, the stock has outperformed the market by surging 36 percent, as compared to a 9 percent gain in the S&P BSE Sensex.
The bank has set the floor price for the QIP at Rs 103.50 per share. In its regulatory filing, the bank's sub-committee—Capital Planning Process of the bank authorised the opening of the QIP issue and approved the floor price.
The lender said, "Subject to compliance with applicable laws, our Bank intends to utilize the Net Proceeds for (i) towards augmenting our Bank’s Tier I Capital to support growth plans and to enhance the business of our Bank; and/ or, (ii) general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by our Board or its duly constituted committee."
Investment banks ICICI Securities, Axis Capital, IDBI Capital, JM Financial and SBI Capital Markets will be managing the share sale.
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