Karnataka Bank approves allotment of equity share capital of ₹600 crore under QIP

The building of Karnataka Bank Head Office. | Photo Credit: H S MANJUNATH

The Committee of Directors of Karnataka Bank, in its meeting held on March 28, approved the allotment of shares pursuant to the Qualified Institutional Placement (QIP), at a price of ₹227.00 per equity share (including premium of ₹217.00 per share), amounting to an aggregate of up to ₹600 crores.

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

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

The proceeds of the Issues will be utilised to meet the needs of the growing business of the bank, a bank release said on Thursday.

The release quoted Srikrishnan H., MD & CEO of the Bank of having said: “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.”