Canara Bank, the public sector lender, on Tuesday said that it has launched qualified institutional placement (QIP) to raise funds from institutional investors. The bank has set a floor price of Rs 103.50 a share for its QIP to raise up to Rs 20 billion.

The bank had received shareholders' nod in its annual general meeting, held in Aug. 10, 2020, for raising up to Rs 20 billion by way of QIP.

"A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, Dec. 10, 2020 to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP," the bank said.

Shares of the bank gained Rs 10.25, or 8.72%, to trade at  Rs 127.80.  The total volume of shares traded  was  2,203,914 at the BSE (12.55 p.m., Tuesday).