Canara Bank To Issue Rs 6,571 Crore-Worth Equity To Government For Capital Infusion
Pedestrians walk past an automated teller machine (ATM) branch of Canara Bank Ltd. in Mumbai, India, (Photographer: Dhiraj Singh/Bloomberg)

Canara Bank To Issue Rs 6,571 Crore-Worth Equity To Government For Capital Infusion

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State-owned Canara Bank said it will issue shares on preferential basis to the government in lieu of a capital infusion of Rs 6,571 crore.

“The bank proposes to issue 27,69,88,576 equity shares at an issue price of Rs 237.23 per share in respect of preferential issue of shares to government, the promoters of the bank, against their capital contribution aggregating to Rs 6,571 crore by way of special resolution,” it said in a regulatory filing.

The shareholding of the government in the bank will go up to 78.52 percent after the issue, from 70.62 percent currently.

Shares of Canara Bank closed 2.59 percent up at Rs 200.15 apiece on the BSE.

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