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State-owned Canara Bank has announced its proposal to raise Rs. 6,000 crore by issuing shares on private placement basis. Canara Bank said in a filing to stock exchanges that the board approved the proposal to raise equity share capital amounting up to Rs. 250 crore through Qualified Institutional Placement (QIP) route.
By issuing up to 25 crore equity shares of face value ? 10 each, with a premium to be decided as per the applicable guidelines for an aggregate amount not exceeding Rs. 6,000 crore inclusive of such premium.
Canara Bank said, “The said QIP issue shall be within the overall maximum limit of Board approved capital raising plan (FY 2018-19) of Rs. 7,000 crores and is subject to market conditions and necessary approvals.”
Earlier this week, Canara Bank moved to the National Company Law Tribunal (NCLT) against telecom infrastructure player GTL, after the company defaulted on its debt repayment. GTL owes on Rs. 459 crores in loans to the bank whereas GTL Infrastructure has defaulted for Rs. 541 crores to the lender.
The companies said in separate filings to exchanges, “Canara Bank has filed an application for initiation of corporate insolvency resolution process against GTL and GTL Infrastructure.”
