Canara Bank sets floor price for QIP; stock jumps 8 per cent

Canara Bank Ltd, one of the largest public sector banks in India, is set to raise Rs 2,000 crore by way of qualified institutional placement (QIP). Reacting to the news, its stock gained 8 per cent on Tuesday.

The shareholders had approved the QIP by way of a special resolution in the annual general meeting held in August. On Monday, the sub-committee of the board i.e. the capital planning process authorised the opening of the QIP and approved the floor price of Rs 103.50 per equity share.

Additionally, a meeting of the sub-committee of the board of directors of the bank will be held on Thursday i.e. December 10, 2020, so as to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP.

On Tuesday, Canara Bank became the top index gainer on BSE Mid-Cap Index. At 1.17 pm, its stock was trading at Rs 127.00, up by 8.04 per cent. Its 52-week high is Rs 232.90 and the 52-week low is Rs 73.85 on BSE.