Canara Bank shares rise over 7% on plan to raise Rs 2,000 cr via QIP

Canara Bank share rose over 7% today after the private sector lender set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP). The bank plans to raise up to Rs 2,000 crore through the share sale.

The stock has gained 17.46% in the last 4 days.  The share touched an intraday high of Rs 126.4, rising 7.53% against previous close of Rs 117.55 on BSE.

Canara Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  However, the share has lost 39.7% in one year and fallen 43.27% since the beginning of this year.

In a month, the share has gained 36.25%. Market cap of the firm rose to Rs 18,234 crore.

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The lender said on Monday it received shareholders' nod in its annual general meeting, held in August, for raising up to Rs 2,000 crore by way of QIP. 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.

"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.

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Canara Bank fixes floor price of Rs 103.50 per share for Rs 2,000 crore QIP