Canara Bank to raise Rs. 4,865 crore via preferential issue to GoI

Lending major Canara Bank surged by over 3 per cent to Rs. 328 per share on the bourses on Wednesday, as the bank approved its plans to raise funds worth Rs. 4,865 crore through preferential issue to the Government of India (GoI).

The bank will be conducting an extraordinary general meeting to take an approval from the shareholders for the same. Furthermore, the bank will consider raising of an additional capital of up to Rs. 1,000 crore in its board meeting on February 8, 2018. In another capital raise plan, the bank will be raising capital worth upto Rs. 3,500 crore.

On Wednesday, the stock recorded an intraday high of Rs. 328 per share and an intraday low of Rs. 318.55 per share on BSE. The stock had surged to its 52-week high of Rs. 463.40 per share on October 26, 2017 and plunged to its 52-week low of Rs. 280.50 per share on March 22, 2017, respectively.

At 10:48 hours IST, the stock was trading at Rs. 319.60 per share, higher by 0.47 per cent on BSE on Wednesday. Meanwhile, S&P BSE Sensex was trading at 34,217.34 level, up by 0.06 per cent and NSE Nifty50 was trading at 10,510 level, higher by 0.11 per cent on Wednesday.