Canara Bank Share Price jumped 4.5 percent in the opening trade on June 3 after the company approved to dilute its stake in its subsidiary Canara HSBC Life Insurance Company through IPO.
At 09:23 am, Canara Bank was quoting at Rs 123.40, up Rs 5.40, or 4.58 percent, on the BSE.
Canara Bank has accorded approval for initiating the process of diluting 14.50 percent stake of the bank in its subsidiary Canara HSBC Life Insurance Company by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO).
At the end of the fiscal year 2024, the bank had a 51 percent stake in its insurance subsidiary.
The same shall be subject to approval of Reserve Bank of India and Department of Financial Services, Government of India.
The size of the issue, opportune time and modalities of issue will be decided in due course, company said.
The company board at its meeting held on May 31, has approved the capital raising plan for the financial year 2024-25 amounting up to Rs 8,500 crore by way of debt instruments (Additional Tier I / Tier II Bonds).
The plan included to raise capital through Basel III Compliant Additional Tier I Bonds to the extent of Rs 4,000 crore during the FY 2024-25 subject to market conditions and necessary approvals.
And raise capital through Basel III Compliant Tier II Bonds to the extent of Rs 4,500 crore during the FY 2024-25 subject to market conditions and necessary approvals.
The bank had reported 18.4 percent rise in its net profit to Rs 3,757.23 crore in the fourth quarter of the financial year 2023-24. On sequential basis, net profit rose 2.8 percent.
Source: Moneycontrol