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Canara Bank shares jump nearly 8% on QIP launch
Canara Bank had saind on Monday that it has set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore.
Shares of Canara Bank on Tuesday surged nearly 8% after the lender set the floor price for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore. The stock jumped 7.52% to Rs 126.40 on the benchmark S&P BSE Sensex and zoomed 7.70% to Rs 126.45 NSE Nifty 50 index.
The lender on Monday said it has set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore. The bank had received shareholders’ nod in its annual general meeting, held in August, for raising the funds.
The sub-committee of the board, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share, Canara Bank said in a regulatory filing. “A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, December 10, 2020, to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP,” the bank said.
Domestic shares climbed to record highs on Tuesday, led by sharp gains in heavyweight Reliance Industries and top automaker Maruti Suzuki, as hopes for a coronavirus vaccine supported risk sentiment. The Nifty 50 index rose 0.46% to 13,416.8 by 0444 GMT and looked set to extend gains for a sixth day and Sensex was up 0.53% at 45,668.37.
The main stock indexes have gained nearly 3% so far in December, as of their last close, having hit record highs in 13 of the last 20 sessions. “Liquidity flow is extremely strong and I don’t see that going away anytime soon, given that money being pumped into the economy by the United States and the UK will find its way into the market,” said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.
Reliance Industries Ltd jumped 2.9% to its highest since mid-November, while Maruti Suzuki India Ltd climbed 3.5% to a more than two-year high, boosting the Nifty Auto Index by 1.5%.
(With agency inputs)
