After launching a Rs 750 crore QIP offering, J&K Bank shares rise 12% and reach a 52-week high`

12 Dec 2023 , 01:38 PM

In Tuesday’s trading on the BSE, shares of Jammu & Kashmir Bank surged by almost 12% to reach a fresh 52-week high of Rs 139.9. This came after the private lender introduced a Qualified Institutional Placement (QIP) aimed at raising Rs 750 crore.

This project is a calculated move meant to support the company’s expansion plans and improve its financial standing. Earlier this year, in July, the board formally approved the decision to seek cash through QIP.

The floor price for the issuance has been fixed by the lender at Rs 112.66 per share, which represents a 10% discount from the previous closing price of Rs 125.1 on the BSE for the company.

The issuance price was approved at the Capital Issuance Committee meeting on December 11, according to a filing with the exchange by the bank.

The share was up 6.93% at Rs 133.7 on the BSE at 1:30 pm. The stock has increased by over 250% over the last two years and by 140% year to date, providing investors with multibagger profits.

At its sole discretion, the Bank may deduct up to 5% from the floor price determined for the QIP. The book-running lead managers designated for the QIP will be consulted by the Bank in determining the Issue price, the Bank stated.

A listed company in India can raise capital without having to conduct a public offering by using a method called a qualified institutional placement (QIP), which involves issuing securities to qualified institutional buyers (QIBs).

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