Karnataka Bank Approves Allocation Of Shares Worth Rs 800 Crore

Karnataka Bank Ltd. approved the allocation of equity shares worth Rs 800 crore on a preferential basis.

The bank has approved the allocation of 3,34,00,132 equity shares at a price of Rs 239.52 apiece, which aggregates to Rs 799.99 crore, according to its exchange filing.

"We are happy to have completed a successful capital raise through preferential allotment of Rs 800 crore to five marquee institutional investors. This is a major step in our transformation journey providing us the growth capital that will facilitate all our developmental activities," said Srikrishnan H, managing director and chief executive officer of the company.

After the preferential allotment, HDFC Life Insurance Co. will hold 3.92% of shares, Quant Mutual Fund will hold 4.35%, Bajaj Allianz General Insurance Co. will hold 0.30%, Bajaj Allianz Life Insurance Co. will have 2.74%, and Bharti AXA Life Insurance Co. will have 0.90% of shares, the filing said.

Shares of Karnataka Bank closed 1.64% lower at Rs 222 apiece, as compared with a 1.41% fall in the benchmark BSE Sensex.