Canara Bank gets shareholders’ nod to raise up to Rs 4,865 crore

New Delhi, March 2 (IANS) State-run Canara Bank on Friday said it has got the shareholders' approval for raising up to Rs 4,865 crore by allotting additional equity shares of around Rs 13.59 crore to the government on preferential basis.

Following the allotment, the government's holdings, as a percentage to the capital, will increase to 72.55 per cent from the present 66.3 per cent and percentage of shareholdings by investors other than the central government will get reduced to 27.45 per cent.

"The Extraordinary General Meeting of the shareholders held on March 1 has approved through a special resolution to create, offer, issue and allot 13.59 crore equity shares with a face value of Rs 10 each for cash at an issue price of Rs 357.84, including premium of Rs 347.84, aggregating up to Rs 4,865 crore on preferential basis to the promoters, government of India," it said in a regulatory filing.

The bank said it was initiating necessary steps for giving effect to the resolution.

The lender also said the composition of its Board of Directors, consequently, will undergo a change in as much as the number of eligible shareholder directors will get reduced to two from the present three.

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