In a strategic move, ICICI Lombard General Insurance Company is set to acquire a 1.08% stake in Karnataka Bank, investing a significant sum of INR 100 crore. The decision was greenlit by the Board of Directors of Karnataka Bank during their meeting on January 27, 2024.
The approved issuance includes 37,72,730 equity shares with a face value of INR 10 each, fully paid-up, at a price of INR 265.06 per equity share. This move aligns with Karnataka Bank’s larger plan to raise additional equity capital of INR 700 crore. The capital infusion includes raising up to INR 100 crore through preferential issue of shares and INR 600 crore through private placement(s) and qualified institutions placement(s).
ICICI Lombard
Karnataka Bank’s proactive approach also involves the issuance of 37.72 lakh equity shares with a face value of INR 10 to ICICI Lombard General Insurance Company. Additionally, the bank’s board has greenlighted the issuance, offering, and allotment of equity shares with a face value of INR 10 each, fully paid-up, to permitted investors. This will amount to an aggregate of up to INR 600 crore through private placement(s), qualified institutions placement(s), and/or any combination thereof, adhering to applicable laws and regulations.
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