Canara Bank to launch Rs 3000 cr QIP this week
State run Canara Bank is planning to raise Rs 3000 crore by placing shares with institutional investors by this week.
By Darshan Mehta, 
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| State run Canara Bank is planning to raise Rs 3000 crore by placing shares with institutional investors by this week. The funds will be used to shore up its Tier 1 capital and increase branch expansion, two sources close to the development said.
The issue includes a Rs 500 crore green shoe option and is likely to be priced at Rs 600 a share, added the source. On Tuesday, Canara Bank was trading at Rs 622 during the afternoon trades.
"The bank is at present aggressively talking to investors and if the response is good, the QIP will be launched today itself. Else, the QIP will be launched within this week itself. The management is currently abroad talking to foreign investors to market the issue" said a senior official on the condition of anonymity. HSBC, JP Morgan and SBI Caps are the bankers which are managing the proposed issue.
When contacted, S Raman, Chairman and Managing Director of Canara Bank declined to comment on the QIP.
The issue will result in a dilution of around 11% and the Government owns 73.2% stake in the bank. This move comes just a day after the Finance Minister indicated that the Government is looking to raise Rs 40,000 cr via divestments in FY12.
The issue includes a Rs 500 crore green shoe option and is likely to be priced at Rs 600 a share, added the source. On Tuesday, Canara Bank was trading at Rs 622 during the afternoon trades.
"The bank is at present aggressively talking to investors and if the response is good, the QIP will be launched today itself. Else, the QIP will be launched within this week itself. The management is currently abroad talking to foreign investors to market the issue" said a senior official on the condition of anonymity. HSBC, JP Morgan and SBI Caps are the bankers which are managing the proposed issue.
When contacted, S Raman, Chairman and Managing Director of Canara Bank declined to comment on the QIP.
The issue will result in a dilution of around 11% and the Government owns 73.2% stake in the bank. This move comes just a day after the Finance Minister indicated that the Government is looking to raise Rs 40,000 cr via divestments in FY12.
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