Canara Bank is going to issue shares on preferential basis to the government in lieu of a capital infusion of Rs 6,571 crore. The bank proposes to issue 27,69,88,576 equity shares at an issue price of Rs 237.23 per share in respect of preferential issue of shares to government, the promoters of the bank, against their capital contribution aggregating to Rs 6,571 crore by way of special resolution.
The shareholding of the government in the bank will go up to 78.52 per cent after the issue, from 70.62 per cent currently.
Canara Bank is an Indian state-owned bank headquartered in Bangalore, in Karnataka. It was established at Mangalore in 1906, making it one of the oldest banks in the country.
