In its meeting held today, the Committee of Directors of the Karnataka Bank has given approval for the allocation of shares as part of the Qualified Institutional Placement (QIP) at a price of ₹227.00 per equity share, including a premium of ₹217.00 per share. This amounts to a total of up to ₹600 crores (Rupees six hundred crores only). The QIP, which aimed to raise ₹600 crores, commenced on March 21, 2024, and concluded on March 27, 2024. The positive response to the QIP highlights the support from the investor community towards the Bank.
This capital infusion, comprising the QIP of t 600 crores, alongside the preferential issues of ₹800 crores in October 2023, approved by the Committee of Directors on October 26, 2023, and ₹100 crores in February 2024, approved by the Committee of Directors on February 28, 2024, signifies the successful execution of the planned capital raising program of ₹1,500 crores announced in September 2023. The Bank’s financial metrics are robust, and the proceeds from the offerings will be directed towards meeting the expanding needs of the Bank’s business.
Mr. Srikrishnan H., MD & CEO of Karnataka Bank, expressed, “We extend a warm welcome to our new Institutional Investors and express our gratitude for their trust and confidence in our journey. This achievement marks the fulfillment of the Capital raising program for FY’23-24 as promised and has significantly diversified the Institutional holding in the Bank.”
Mr. Sekhar Rao, Executive Director of Karnataka Bank, remarked, “Through this successful allocation under QIP, we have bolstered our financial robustness while also bringing esteemed institutional investors on board to our CapTable. The capital infusion accomplishes the twin goals of expansion and stability, in line with our strategic aims.”
NovaaOne Capital Private Limited served as the exclusive advisor for the entire capital raise of ₹1,500 crores. Ambit Private Limited and Avendus Capital Private Limited acted as the Book Running Lead Managers for the QIP.