Trilegal Advised Ambit And Avendus Capital On Karnataka Bank's First-Ever QIP

Trilegal Advised Ambit And Avendus Capital On Karnataka Bank's First-Ever QIP

Trilegal, a leading law firm, has represented the book running lead managers, Ambit Private Limited and Avendus Capital Private Limited, on the qualified institutions placement (QIP) of equity shares by Karnataka Bank Limited (Bank) aggregating to INR 6000 million.

Karnataka Bank, renowned for its wide range of customized banking solutions including loans, deposits, and international banking services, marked a historic milestone with its first-ever QIP issuance in its 100-year history. The proceeds from this QIP are earmarked to bolster the bank's capital reserves as mandated by the Reserve Bank of India (RBI), thus enhancing its lending capacity.

The QIP, initiated on March 21, 2024, concluded successfully on March 27, 2024, with a total allotment of 2,64,31,718 equity shares. Priced at Rs 227 per share, the issue size totalled approximately Rs 599.99 crore, exhibiting robust investor interest.

Notably, the issue price of Rs 227 is at a discount of Rs 14.07 or 1.91%, to the floor price of Rs 231.43 per equity share set for the QIP issue, enhancing its attractiveness to potential investors.

HSBC Mutual Fund emerged as the largest allottee, securing a significant 25% allocation, followed by SBI Life Insurance Company and Franklin India Smaller Companies Fund, each receiving allocations of 12.50%. Other notable allottees including Max Life Insurance Company secured 8.33% allocation, while Morgan Stanley Asia Singapore PTE and HSBC Global Investment Funds received allocations of 7.67% and 5.50%, respectively.

NovaaOne Capital served as the sole advisor for the entire capital raise of Rs 1,500 crore, while Ambit and Avendus Capital acted as the book running lead managers for the QIP.

Trilegal's Capital Markets Partners, Bhakta Patnaik and Albin George Thomas, spearheaded the deal, bringing their expertise and leadership to the forefront. They were assisted by attorneys Arjun Rastogi and Malika Grewal, who served as Senior Associates, along with Associates Arsh Sinha, Divya Shah, and Shambhavi Sharma, all of whom played crucial roles in supporting the transaction.

The successful conclusion of this transaction underscores Trilegal's expertise in navigating complex capital market transactions and its commitment to facilitating growth and innovation in the financial sector.