Banking News

icici lombard general insurance: Karnataka Bank to raise Rs 100 cr equity from ICICI Lombard



Mangaluru-headquartered private lender Karnataka Bank has decided to allot Rs 100 crore worth preferential shares to ICICI Lombard General Insurance as a part of its plans to shore up Rs 700 crore in fresh equity.

The bank, at a board meeting on Saturday, decided on this allotment at a share price of Rs 265.06 apiece. The allotment is, however, subject to regulatory and shareholder approval. The bank will raise the balance equity in one or more tranches through other permitted means.

The equity raise is part of a board decision of September last year to raise Rs 1500. The bank raised Rs 800 crore in October last year through preferential issue of shares.

The proposed issue will help the bank strengthen its financial foundation for future growth. The proceeds of this issue will be primarily used to meet the needs of the growing business of the bank, including long-term capital requirements and for general corporate purposes, the bank said in a statement.

Bank MD & CEO Srikrishnan H said: “This proposed capital infusion is a validation of our positioning for growth and stability. We welcome ICICI Lombard General Insurance Co Ltd to our CapTable adding to the already well represented Institutional holdings. We are confident about our follow-up funding round that will attract marquee investors standing by our committed performance in the future.”

Bank’s Executive Director Sekhar Rao said: “Our journey of growth and innovation will be further accelerated by the proposed capital raise. This will enable us to explore innovative options for growth and support our ambitions to expand our reach, embrace digital transformation, support partnerships and deliver value to all stakeholders.”The bank has roped in NovaaOne Capital as financial advisor on fundraise through preferential issue.



Source link