Canara Bank surges 7% after setting floor price for QIP

NEW DELHI: Shares of Canara Bank climbed 7 per cent in Tuesday's trade after the bank set a floor price of Rs 103.50 per share for its proposed Rs 7,000 crore qualified institutional placement (QIP).

The bank had received shareholders' nod in its annual general meeting, held in August, for raising up to Rs 2,000 crore by way of QIP.

Following the development, the stock rose 7.36 per cent to hit a high of Rs 126.20 on BSE. This was the fourth day of consecutive gains for the banking stock.


The sub-committee of the board -- Capital Planning Process of the bank, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share, Canara Bank said in a regulatory filing.

"A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, December 10, 2020 to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP," the bank said.

Shares of Canara Bank on Monday closed higher than its QIP floor price at Rs 117.55 apiece on the BSE, up 5.62 per cent from its previous close.