Canara Bank to raise Rs 6,000 cr by issuing shares on private placement basis

State-owned Canara Bank Thursday said it proposes to raise Rs 6,000 crore by issuing shares on private placement basis.

The board approved proposal to raise equity share capital amounting up to Rs 250 crore through Qualified Institutional Placement (QIP) route, by issuing up to 25 crore equity shares of face value Rs 10 each, with a premium to be decided as per the applicable guidelines for an aggregate amount not exceeding Rs 6,000 crore inclusive of such premium, Canara Bank said in a filing to stock exchanges.

"The said QIP issue shall be within the overall maximum limit of Board approved capital raising plan (FY 2018-19) of Rs 7,000 crore and is subject to market conditions and necessary approvals," it said.