J&K Bank Initiates Rs 750 Cr QIP, Shares Surge 6%
On 12 December, Jammu and Kashmir Bank witnessed a 6 per cent surge in its shares' opening as it initiated a Qualified Institutional Placement (QIP) aiming to secure Rs 750 crore. This strategic move is designed to fortify the bank's financial standing and propel its growth initiatives.
The decision to opt for a QIP was greenlit by the J&K Bank board back in July, setting the issue's floor price at Rs 112.66 per share, a markdown of 10.02 per cent from the previous day's closing price of Rs 125.20 on the National Stock Exchange (NSE).
In a regulatory filing, the bank disclosed that the Capital Issuance Committee, during a meeting on 11 December, endorsed the issue price.
J&K Bank clarified its discretion to offer up to a 5 per cent discount on the calculated floor price for the QIP, with the issue price to be determined by the bank in collaboration with the appointed book-running lead managers.
A QIP allows listed Indian companies to raise capital by issuing securities to qualified institutional buyers (QIBs) without resorting to a public offering.
The bank's shares demonstrated an 8 per cent surge on 11 December, closing at Rs 124 on the NSE. Remarkably, the stock has yielded substantial returns for investors in 2023, doubling their investments. Over the past six months, J&K Bank shares have skyrocketed by nearly 120 per cent, surpassing the Nifty 50 benchmark's 12.8 per cent increase during the same period.
