JK Bank Initiates Rs 750 Cr QIP
Jammu and Kashmir Bank has initiated its Rs 750 crore qualified institutional placement (QIP), leading to a significant surge of almost 12 per cent in the stock price.
Back in July, the J&K Bank board had approved the decision to raise funds through a QIP.
As per an exchange filing, the company stated, "The Board Committee has given the green light to conclude the QIP issue period, which ended on 14 December 2023. The bank received applications for a total of 6,97,02,602 fully paid-up Equity Shares and corresponding funds in the escrow account from eligible qualified institutional buyers, in line with the QIP terms initiated on 11 December 2023.
The QIP floor price stood at Rs 112.66 per share, reflecting a 10.02 per cent discount from the previous day's closing price of Rs 125.20 on the National Stock Exchange (NSE).
The Capital Issuance Committee, in a meeting on 11 December, sanctioned the issue price, revealed through a regulatory filing by the bank.
As part of its flexibility, the bank may offer a discount of up to 5 per cent on the calculated floor price for the QIP. The final issue price will be decided in collaboration with the appointed book-running lead managers for the QIP.
QIP empowers a listed company in India to secure capital by issuing securities to qualified institutional buyers (QIBs) without a public offering. This strategic move aligns with J&K Bank's proactive stance to fortify its financial standing and foster strategic expansion.
In the last trading session, J&K Bank's shares concluded around 1.18 per cent lower at Rs 129.45 apiece. Remarkably, the stock has more than doubled in value this year.
