Mumbai: State owned Canara Bank on Friday announced its plan to dilute 14.50 percent stake in its subsidiary Canara HSBC Life Insurance Company via initial public offering (IPO).
“Canara Bank has accorded approval for initiating the process of diluting 14.50 percent stake of the Bank in its subsidiary M/s Canara HSBC Life Insurance Company Ltd by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO),” the bank informed the exchanges. It added that the size of the issue, opportune time and modalities of issue will be decided in due course.
The same shall be subject to approval of Reserve Bank of India and Department of Financial Services, Government of India, the bank said. The board of directors of Canara Bank also approved plan to raise Rs 8,500 crore via debt instruments. The amount is to be raised within the ongoing fiscal year. Out of the total amount, up to Rs 4,000 crore is to be raised through "Basel III Compliant Additional Tier I Bonds", and up to Rs 4,500 crore via "Basel III Compliant Tier II Bonds, the lender said.
The public sector lender also said that it has given the approval to kick off the process for diluting 13 percent stake through an IPO in Canara Robeco Asset Management Company (CRAMC).
