Karnataka Bank raises Rs. 600 crores through QIP

The Committee of Directors of the Bank, in its meeting held today, has approved the allotment of shares pursuant to the Qualified Institutional Placement (QIP), at a price of Rs. 227.00 per equity share (including premium of Rs. 217.00 per share), amounting to an aggregate of up to Rs. 600 crores (Rupees six hundred crores only). The QIP for Rs. 600 crores opened on March 21, 2024, and closed on March 27, 2024.

The response to the QIP underlines the support from the investor community for the Bank.

This capital raise comprising the QIP of Rs. 600 crores, along with the preferential issues of Rs. 800 crores in October 2023 allotment of which was approved by the Committee of Directors on October 26, 2023, and Rs. 100 crores in February 2024 allotment of which was approved by the Committee of Directors on February 28, 2024, marks the completion of the planned capital raise program of Rs. 1,500 crores announced in September 2023.

The Bank's financial parameters are strong, and the proceeds of the Issues will be utilized to meet the needs of the growing business of the Bank.

Mr. Srikrishnan H., MD & CEO of Karnataka Bank, stated, "We welcome our new Institutional Investors and thank them for their trust and confidence in our journey. This milestone completes the Capital raising program for FY'23-24 as committed and has achieved significant broad-basing of the Institutional holding in the Bank."

Mr. Sekhar Rao, Executive Director of Karnataka Bank, stated, "With this successful allotment under QIP, we have enhanced our financial strength and at the same time onboarded reputed institutional investors to our CapTable. The capital raise serves the dual objective of growth and stability, aligned with our strategic objectives."

NovaaOne Capital Private Limited acted as the sole advisor to the entire capital raise of Rs. 1,500 crores.

Ambit Private Limited and Avendus Capital Private Limited acted as the Book Running Lead Managers for the QIP.

Shares of The Karnataka Bank Limited was last trading in BSE at Rs. 225.10 as compared to the previous close of Rs. 228.60. The total number of shares traded during the day was 143173 in over 4066 trades.

The stock hit an intraday high of Rs. 230.80 and intraday low of 224.05. The net turnover during the day was Rs. 32643051.00.

Source : Equity Bulls

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TheKarnatakaBank INE614B01018 FundRasing QIP