Public sector bank, Canara Bank successfully completed a Qualified Institutional Placement (QIP) that raised Rs 1,993.2 crore. The bank issued 33 Million equity shares at Rs 604 per share. Bank’s adequacy was more than 13% before QIP. QIP was open to FIIs too with a limitation of 20%. The bank attracted 47 investors including LIC which is the biggest investor with Rs 500 crore. The second biggest investor is SBI with Rs 250 crores.
The proceeds of the OIP amount would be used by the bank to part finance its capital base and to expand its branch network. Presently Canara Bank has all India presence with 3212 branches, over 2150 ATMs and over 38 Million clientele base.
This is the second instance, where a public sector bank has gone for a QIP issue. Three years ago, Bank of India had raised $340 Mn.Google+