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Canara Bank Raises Rs 2,000 Crore Via QIP With LIC As Largest Investor

LIC, BNP Paribas, Nippon Life adn Societe Generale were some of the big names that bought shares.

Pedestrians walk past an automated teller machine (ATM) branch of Canara Bank. (Photographer: Dhiraj Singh/Bloomberg)
Pedestrians walk past an automated teller machine (ATM) branch of Canara Bank. (Photographer: Dhiraj Singh/Bloomberg)

State-owned Canara Bank Ltd. on Friday said it has successfully raised Rs 2,000 crore equity capital by issuing over 19 crore shares to eligible investors.

Life Insurance Corporation of India emerged as the largest investor in the bank's qualified institutional placement issue.

The subcommittee of the board at its meeting held today, approved allotment of 19,32,36,714 equity shares to eligible qualified institutional buyers at an issue price of Rs 103.50 per equity share, aggregating up to Rs 2,000 crore, Canara Bank said in a regulatory filing.

The QIP had opened on Dec. 7 and closed on Dec. 10.

Among the allottees - who were allotted more than 5% of the total equity shares offered in the issue - include Life Insurance Corporation (25%), BNP Paribas Arbitrage (9.11%), Nippon Life India Trustee Ltd. (8.81%), Societe Generale (7.91%) and Kuber India Fund (6.16%).

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"Pursuant to the allotment of equity shares in the QIP, the paid-up equity share capital of the bank stands increased from Rs 1,453.50 crore to Rs 1,646.74 crore comprising of 1,64,67,38,220 equity shares of the face value of Rs 10 each," Canara Bank said.

Shares of the bank closed at Rs 125.25 apiece on BSE, up 2.24% from the previous close.