Karnataka Bank's rights issue closes with over-subscription

NEW DELHI: Karnataka Bank's rights issue of one share for every two shares at Rs 70 apiece has ended with a subscription of over 185 per cent.

"With the completion of rights issue, bank has augmented its capital funds to the extent of Rs 658.96 crore and the capital adequacy ratio has improved further paving the way for further expansion of business in the coming years," Bank MD & CEO P Jayarama Bhat said in a regulatory filing.

The issue received overwhelming response from shareholders and investors with an overall subscription reaching 185.52 per cent. The shares have been allotted on December 8, Karnataka Bank said.

The shares have started trading on BSE and NSE from December 14, it added.

The issue had opened for subscription on November 7 and closed on November 28.

Stock of Mangaluru based Karnataka Bank closed 2.45 per cent up at Rs 113 on BSE.