Canara Bank to sell 8.9% in CARE; sets floor price at Rs 1,500
New Delhi: State-owned Canara Bank has decided to sell nearly 9 per cent stake in the credit ratings firm CARE Ltd that could fetch it over Rs 393 crore.
Inviting bids from merchant bankers, Canara Bank, in the bid document said: "Our bank is proposing to sell 26,22,430 equity share of Credit Analysis and Research Ltd (CARE Ltd) comprising of 8.90 per cent of the total paid up equity share capital of the company with a floor price of Rs 1,500 per share."
The floor price is at a premium over CARE Ltd's current stock price on BSE. The minimum lot size of the bid is one lakh shares, the bank said, asking the arrangers to submit the same by noon of June 23.
It said the bids shall be evaluated after taking into account the price per share, quantum of shares and arranger fees. The arranger(s) will be shortlisted and appointed based on the highest price, the bank said, adding that if more than one arranger has matched the highest bid price, then it will proportionately pass on the quantum among them.
The Bengaluru headquartered lender said it will complete the sale proceedings by 3 PM on June 30. While Canara Bank stock closed 0.93 per cent down at Rs 352.55 on BSE, that of CARE was down 2.09 per cent at Rs 1,454.70.