Karnataka Bank Plans To Raise Rs 1,500 Cr Through Share Sale
Karnataka Bank announced on 22 September that its board has granted approval to raise Rs 1,500 crore through share sales, enabling the bank to support its business growth initiatives. The board's approval encompasses various fundraising methods, including preferential issue, rights issue, qualified institutional placement (QIP), or any other mode that complies with regulatory requirements.
Furthermore, the board has also sanctioned the issuance of up to 3,34,00,132 equity shares, each with a face value of Rs 10, to entities such as HDFC Life Insurance Company, Bajaj Allianz Life Insurance, Quant Mutual Fund, Bharti AXA Life Insurance, and Bajaj Allianz General Insurance. These shares will be priced at Rs 239.52 per equity share, amounting to a total of up to Rs 800 crore, and will be offered on a preferential basis.
However, the execution of this issuance is contingent upon obtaining approvals from the bank's shareholders and securing the necessary regulatory clearances. The capital raised through this proposed issue will play a pivotal role in strengthening the bank's financial foundation, positioning it for future growth. These funds will primarily be directed towards meeting the bank's expanding business requirements, including long-term capital needs and general corporate purposes.
