ICICI Lombard on January 28 announced that it will acquire 1.08% stake in Karnataka Bank for ₹100 crores.
“The Board of Directors of Karnataka Bank on January 27, 2024 approved to issue, offer and allot 37,72,730 equity shares of a face value of ₹ 10/- each fully paid at a price of ₹ 265.06/- per equity share, amounting to an aggregate value of up to ₹ 100 crore,” the company said in an exchange filing.
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The Board of Directors of Karnataka Bank has given approval for the infusion of additional share capital of ₹700 crores. Within this allocation, up to ₹100 crores are earmarked for raising funds through preferential issue of shares, while the rest ₹600 crore will be raised through private placement(s) and qualified institution placements.
In a separate decision, Karnataka Bank has given the green light for the issue of up to 37.72 lakh equity shares with a face value of ₹10 each to ICICI Lombard General Insurance Company. At the same time, the board authorized the issue, offer and allotment of fully paid equity shares with a nominal value of ₹10 each to eligible investors. This issue, total up to ₹600 crore, will be made through private placement(s), qualified institutions, and/or any combination thereof, as per applicable laws and regulations.
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Karnataka Bank Limited is an Indian private sector bank based in Mangalore. It is a Scheduled Commercial Bank with a network of 905 branches. It has 8,652 employees and more than 13 million customers across the country. The market capitalization of the bank is ₹ 85 billion (as on January 25, 2024).
Karnataka Bank posted a turnover of ₹82.1 billion in FY 2022-23, almost 14% more than ₹71.8 billion for FY 2021-22.
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Published: 28 Jan 2024, 12:12 IST