Karnataka Bank shares get a boost after lender approves raising up to Rs 1,500 crore via QIP

Karataka Bank Share Price: The stock of Karnataka Bank ended the trade session on Monday (September 25) on a high note, rising 4.63 per cent, or Rs 11.20, at Rs 252.90, after the lender announced that its board had approved raising capital up to Rs 1,500 crore.

The stock that opened at Rs 246.50 on Monday rose to the day's high of Rs 253.95 and was trading in positive territory for most part of the day.

The board has approved raising capital up to Rs 1,500 crore in one or more tranches by way to preferential issue/rights issue/QIP or any other permissible mode, subject to such necessary regulatory/statutory approvals as the case maybe and shareholders’ approval," the company said in a statement to BSE on Friday (September 22). 

Divulging more details about raising funds, the company said, "Further, out of which as part of tranche 1, the board has approved the issuance of up to 3,34,00,132 equity shares of face value of Rs 10/- each, to HDFC Life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Quant Mutual Fund, Bharti AXA Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited (“Proposed Allottees”), at a price of Rs 239.52/- per equity share (including premium of Rs 229.52/- per share), amounting to an aggregate of up to Rs 800 crores on a preferential basis."

Karnataka Bank Stock Performance

The jump on Monday helped the stock rise 4.29 per cent in the last five sessions.

The shares of the lender have been up 11.70 per cent in the last one month, while they have skyrocketed 95.59 per cent in the last six months.

The stock has soared 63.95 per cent year-to-date, while its value has more than tripled to 221.76 per cent in the last one year.

It has comprehensively outperformed the Nifty 50 benchmark performance, which is down 2.37 per cent in the last five sessions, has risen 1.91 per cent in the last one month, has soared 15.83 per cent in the last six months, has been up 8.12 per cent year-to-date, and has skyrocketed 15.62 per cent in the last one year.