Canara Bank today said it will raise Rs 570 crore through preferential allotment of shares to the government to fund its business growth.
The issue price for the preferential allotment would not be less than Rs 408.95 per share of the face value of Rs 10 each, Canara Bank said in a statement.
Shares of the bank closed at Rs 408 a share, up 3.66 per cent on the BSE.
The bank would issue 1.39 crore fresh shares to be allotted on preferential basis to the government of India.
Currently, the government owns 60 per cent in the bank.
Post allotment, the holding would go up to 60.91 per cent.
The objective of the issuance is to augment Tier I capital of the bank, it said, adding, the capital raised would be utilised to improve the capital adequacy and to fund the general business needs of the bank.