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Karnataka Bank approves allotment of equity share capital on a preferential basis

Oct 27, 2023

By: BlinkX Research Team

The Committee of Directors of the Board of Karnataka Bank have approved allotment of 3,34,00,132 equity shares of face value of ₹ 10/- each, to HDFC Life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Quant Mutual Fund, Bharti AXA Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited (“Allottees”), at a price of ₹ 239.52/- per equity share (including premium of ₹ 229.52/- per equity share), amounting to an aggregate of ₹ 799,99,99,616.64 (Rupees seven hundred ninety nine crores ninety nine lakhs ninety nine thousand six hundred sixteen and paise sixty four only ) on a preferential basis. 

The Bank received 99.79% favorable votes from its shareholders for this preferential issue. 

Mr. Srikrishnan H., MD & CEO of Karnataka Bank, stated, "We are happy to have completed a successful Capital raise through Pref Allotment of Rs. 800 crs to 5 Marquee Institutional Investors. This is a major step in our transformation journey providing us the growth capital that will facilitate all our developmental activities” 

NovaaOne Capital, a SEBI registered Merchant Banker, is acting as an exclusive financial advisor to the Bank on this fund raise.