Karnataka Bank Plans ₹600 Crore QIP, Targets Total Capital Raise of ₹1,500 Crore

22 Mar 2024 , 11:25 AM

Karnataka Bank plans to raise ₹600 Crore through a Qualified Institutional Placement (QIP), as per sources reported by CNBC-TV.

The indicative floor price for the QIP is set at ₹231.45 per share, slightly lower than the previous closing price of Karnataka Bank’s shares.

At the time of writing, the shares of Karnataka Bank were trading flat at ₹233.45 on the NSE. The QIP is expected to be part of the bank’s broader strategy to raise a total of ₹1,500 Crore during the fiscal year.

During the bank’s centenary celebration in Mangaluru, Srikrishnan H, MD and CEO of Karnataka Bank, announced the successful completion of the first tranche of capital raise, totaling ₹800 Crore by October 2023.

He also mentioned ongoing efforts to secure an additional ₹700 Crore, bringing the total capital raise to ₹1,500 Crore by the end of the current financial year.

Over the past year, shares of Karnataka Bank have seen a remarkable surge of over 70%, as investors sought out smaller banks offering attractive valuations.

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