Rakesh Jhunjhunwala has bought 1.59 percent stake i.e. 2,88,50,000 shares in Canara Bank
Rakesh Jhunjhunwala has added the state-owned Canara Bank to his portfolio. Apart from Canara Bank, Rakesh Jhunjhunwala has shares of three more banks in his portfolio. These include Federal Bank and Karur Vysya Bank.
Rakesh Jhunjhunwala is known for making profits by investing in value stocks and holding them for a long period of time. According to the information given to the regulator, Rakesh Jhunjhunwala has taken 1.59 percent stake in Canara Bank. This information has been received from BSE data. According to the shareholding statement issued on August 24, Rakesh Jhunjhunwala has bought 1.59 per cent stake i.e. 2,88,50,000 shares in Canara Bank.
Earlier on Tuesday morning, Canara Bank had said that it has approved 16.73 crore share allotment. The bank’s QIP of Rs 2500 crore was closed a day earlier on 23 August. The bank’s QIP was opened on August 17.
On Tuesday, Canara Bank’s shares climbed 2 per cent to close at Rs 155.70 on the BSE. Whereas today its shares closed down 2.95% at Rs 151.10.
Canara Bank said that 7 investors were allotted more than 5% of the total equity share of the QIP. Of these, 15.91% shares have been allotted to LIC, 12.55% to BNP Paribas Arbitrage, 7.97% to Societe Generale, 6.37%-6.37% to Indian Bank and ICICI Prudential Life Insurance.
Morgan Stanley Asia (Singapore) has got 6.16% share in the QIP. Whereas Volrado Venture Partners Fund II has taken 6.05% stake.
Canara Bank may accelerate up to 19%
Analysts believe that Canara Bank will benefit from the QIP and the capital level will increase. According to the Financial Express, Emkay Global said in a note, “Canara Bank’s CET-1 ratio is still low as compared to large banks. But we believe that the bank will be more likely to raise funds either by selling stake in subsidiaries or through the market. was required.” In view of all this, Emkay Global has fixed the target price of Canara Bank at Rs 185. Accordingly, it can increase by 18.8% from the current level.
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