Daijiworld Media Network – Mangalore (SP)

Mangalore, Apr 7: The city-based Karnataka Bank Ltd had come out with a rights issue at the ratio of 2:5 for its existing shareholders. The issue, which had proposed to issue rights shares of the bank at Rs 85 each with a premium of Rs 75, was meant to augment capital of the bank to the tune of Rs 457.03 crore.

The bank had received requests for 8,20,69,788 shares as against the rights issue size of 5,37,935 shares. The issue therefore, has been oversubscribed by 1.53 times, said managing director of the bank, P Jayaram ABhat.

The share allotment criterion was finalized in consultation with Bombay Stock Exchange. The shares subscription, which began on March 8, ended on March 22. The directors of the bank finalized the distribution pattern of the rights issue on March 31. These shares were listed in National Stock Exchange on April 5, and trading began on April 6, he added.

The net worth of the bank, buoyed by the rights issue, has reached a level of Rs 2,285 crore. The bank, which reached a level of Rs 44,600 crore as at March 31 this year under total turnover, has set for itself an ambitious target of increasing this amount to Rs 54,000 crore by March 31, 2012.