Canara Bank Issued QIP at Rs 103.50 Per Equity Share, LIC Largest Investor

Canara Bank QIP Issued – Public Sector Canara Bank has successfully issued and raised Rs 2,000 crore equity capital by issuing qualified institutional placement (QIP) of over 19 crore shares to eligible investors. LIC is the largest investor in the bank with more than 5% shares where as who were allotted more than 5 per cent of the total equity shares offered in the issue – include Life Insurance Corporation (25 per cent), BNP Paribas Arbitrage (9.11 per cent), Nippon Life India Trustee Ltd (8.81 per cent), Societe Generale (7.91 per cent) and Kuber India Fund (6.16 per cent).

The board of the Canara Bank had approved allotment of 19,32,36,714 equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 103.50 per equity share, aggregating up to Rs 2,000 crore. The QIP had opened on December 7 and closed on December 10.

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Earlier, For employees they had issued shares at around 170 and it attracted perquisite tax also., but the shares were allotted at throwaway price of Rs 103 through QIP and that too at a time when things are looking good for PSU banks. Currently Canara Bank stocks are traded at stock exchanges at Rs 126 per share.