Karnataka Bank to raise Rs 1,500 crore via share sale

Karnataka Bank Share Sale: Karnataka Bank on Friday said its board has given approval to raise Rs 1,500 crore in one or more tranches through share sales to fund business growth.

The board has approved fundraising by way of preferential issue or rights issue, or QIP, or any other permissible mode, subject to necessary regulatory approval, the bank said in a filing to exchanges.

Further, 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, Bajaj Allianz Life Insurance, Quant Mutual Fund, Bharti AXA Life Insurance, Bajaj Allianz General Insurance at a price of Rs 239.52 per equity share, amounting to an aggregate of up to Rs 800 crore on a preferential basis.

This is subject to the approval of shareholders of the bank and other regulatory approvals as may be required, it said.

The proposed issue will help the bank strengthen its financial foundation for future growth, it said, adding 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.