INSUBCONTINENT EXCLUSIVE:
Canara Bank subsidiary Can Fin Homes plans to raise Rs 7,000 crore through a mix of debt securities and equity allotment to fund its
business growth, meet working capital requirement and repay debt.
Of this, Rs 6,000 crore will be raised by issuing non-convertible
debentures (NCDs), while Rs 1,000 crore is to be mopped up through issuing equity shares or specialised securities.
The board of directors
will seek approval from shareholders at the company's upcoming annual general meeting on July 18.
The company said in a regulatory filing
that it "intends to offer or invite subscription of bonds or NCDs or tier II bonds, onshore or offshore, denominated Indian rupees or any
foreign currency for cash up to an amount of Rs 6,000 crore only, on private placement basis for a period of one year from the AGM until
conclusion of next AGM".
In order to issue NCDs, the prior consent of members is sought by way of special resolution, it added.
The board
will also seek permission to issue and allot shares to domestic or overseas buyers, in one or more tranches, through private placement by
way of qualified institutions placement (QIP) or preferential allotment to Canara Bank to raise up to Rs 1,000 crore.
Can Fin Homes said the
proceeds from this issue will be utilised for business purposes, including exploring acquisition opportunities and general corporate
purposes.
Stock of Can Fin Homes closed 1.35 per cent up at Rs 347.90 on BSE.
