Karnataka Bank approves Rs 600 crore QIP share allotment

Private lender Karnataka Bank’s committee of directors on Thursday approved the allotment of shares worth Rs 600 crore at a price of Rs 227 apiece to qualified institutional investors.

The QIP for ₹ 600 crore opened on March 21 and closed on March 27.

The capital raise comprised the QIP of Rs 600 crore along with the preferential issue of Rs 800 crore in October last year. The bank’s financial parameters are strong, and the proceeds of the issues will be used to meet the needs of growing the business, the bank said in a statement.


This milestone completes the capital raising program for 2023-24 as committed and has achieved significant broad basing of the Institutional holding in the bank, MD & CEO Srikrishnan H said.

Executive Director Sekhar Rao said the successful allotment under QIP had enhanced the bank’s financial strength and at the same time onboarded reputed institutional investors. “The capital raise serves the dual objective of growth and stability, aligned with our strategic objectives.”

Novaa One Capital acted as the sole advisor to the entire capital raise of Rs 1,500 crore, while Ambit and Avendus Capita acted as the book-running lead managers for the QIP.