PSB stock held by Rakesh Jhunjhunwala peaks in 52 weeks in weak market
Canara Bank shares hit a new 52-week high of Rs 178.90, up 3% from BSE in intraday trading on Friday, in an otherwise weak market. The market price of the bank of public sector enterprises (PSU) broke its previous record of Rs 177.40, hit during intraday trading on Thursday.
The stock was trading higher for the fifth day in a row and rose 13% during the period. In comparison, the S&P BSE Sensex was 0.72% at 58,699 points at 1:38 p.m. In the past week, the benchmark has fallen 2.2%, the data shows.
Investor Ace Rakesh Radheshyam Jhunjhunwala held 28.85 million shares or 1.59% of Canara Bank capital as of August 24, 2021, according to shareholder structure data filed by the Bank.
Last month, Canara Bank raised Rs 2,500 crore through Qualified Institutional Placement (QIP). It had issued 167.39 million shares to Qualified Institutional Buyers (QIB) at a price of Rs 149.35 per share. With last week’s rally, the stock is currently trading 20 percent higher than its QIP issue price.
Canara Bank said it intended to use the net proceeds to increase the Bank’s Tier I capital to support its growth plans and improve the Bank’s business.
At the same time, on Wednesday September 29, 2021, the rating agency CRISIL Ratings upgraded the Bank’s Tier I bonds (under Basel III) to “CRISIL AA + / Stable” from “CRISIL AA / Stable”. CRISIL Ratings also reaffirmed its “CRISIL AAA / Stable / CRISIL A I +” ratings on Tier II (under Basel III) and Lower Tier II (under Basel II) bonds, and the short-term rating on the certificate of deposit.
“The upgrading of the Tier I bond rating (under Basel III) takes into account the improved position of Canara Bank to make future coupon payments, supported by the proposed adjustment of losses accumulated with the premium account of ‘issuance, and improving the bank’s capital ratios. In line with the proposed adjustment, the bank’s eligible reserves / total assets ratio will improve, ”CRISIL Ratings said in the rating justification. CLICK HERE FOR MORE DETAILS