Canara Bank Surges Over 7% As Its Rs 2,000 Crore Fund Raising Plan Opens

Canara Bank shares have been on an upward spiral and have jumped a whopping 37 per cent compared with 9 per cent gain in the Sensex.

Canara Bank Surges Over 7% As Its Rs 2,000 Crore Fund Raising Plan Opens

Shares of the Bangalore-based state-run lender, Canara Bank, rose as much as 7.5 per cent to hit an intraday high of Rs 126.40 after its fund raising plan via qualified institutional placement (QIP) opened for subscription. Canara Bank is planning to raise Rs 2,000 crore by way of qualified institutions placement of equity shares of face value of Rs 10 each, Canara Bank said in a stock exchange filing after market hours on Monday.

Canara Bank's board of directors had in July approved raising capital to the tune of Rs 2,000 crore through various means. The subcommittee of the board - capital planning process of the bank at its meeting on December 7 approved and authorised the opening of the QIP. The floor price for the QIP has been fixed at Rs 103.50 per equity share.

Canara Bank shares have been on an upward spiral and have jumped a whopping 37 per cent compared with 9 per cent gain in the Sensex.

As many as 14.17 lakh Canara Bank shares changed hands on the BSE compared with an average of 15.08 lakh shares traded daily in the past two weeks.

As of 11:10 am, Canara Bank shares traded 5.61 per cent higher at Rs 124.15, outperforming the Sensex which was up 0.15 per cent.