Karnataka Bank Considers QIP To Raise Rs 600 Cr

Karnataka Bank is in the process of raising approximately Rs 600 crore through a Qualified Institutional Placement (QIP), According to sources reported by a media house. The indicative floor price for this QIP is set at Rs 231.45 per share, slightly lower than the previous closing price of Karnataka Bank shares.

As of 09.46 am, shares of Karnataka Bank were trading unchanged at Rs 232.75 on the NSE. This capital raise is expected to be part of the company's larger plan to secure Rs 1,500 crore in this fiscal year.

During the centenary celebration of the bank in Mangaluru, Srikrishnan H, MD and CEO of Karnataka Bank, revealed that the first tranche of capital raise amounting to Rs 800 crore had been successfully completed by October 2023. He further stated that the bank is currently in the process of conducting the follow-up round of Rs 700 crore, aiming to achieve the total target of Rs 1,500 crore within the current financial year.

Over the past year, Karnataka Bank's shares have seen a remarkable surge of over 70 per cent, driven by investor interest in smaller banks offering reasonable valuations.