Private sector lender Karnataka Bank’s board on Friday decided to raise about Rs 1,500 crore in fresh capital in one or more tranches through preferential issue / rights issue/ QIP or any other permissible mode. The board decision, however, is subject to shareholder approval.
The board approved the issuance of up to 3,34,00,132 equity shares of face value of
Rs 10 each to HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Quant Mutual Fund, Bharti AXA Life Insurance Company, and Bajaj Allianz General Insurance Company at a price of Rs 239.52 per equity share (including premium of ₹ 229.52/- per share), amounting to about Rs 800 crore on a preferential basis.
The proposed issue will help the bank strengthen its financial foundation for future growth. The proceeds of this issue will be primarily used to meet the needs of the growing business of the bank, including long-term capital requirements and for general corporate purposes, the bank said in a press statement.
Bank MD & CEO Srikrishnan H said, “This capital infusion marks a pivotal moment in our journey. It reflects our commitment to fortify our position in the market and better serve our customers. We are confident that this strategic step aligns with our vision for growth and stability.”
Bank’s executive director Sekhar Rao said, “Our journey of growth is propelled by the strategic capital raise, fueling our ambitions to expand our reach, embrace digital transformation and enhance our technical capabilities, support partnerships and deliver value to all stakeholders.”
NovaaOne Capital, a SEBI-registered Merchant Banker, is acting as an exclusive financial advisor to the bank on this fund raise.
