The lender has set the floor price for the issue at Rs 112.66 per share, reflecting a discount of 10.02% from the bank's previous closing price of Rs 125.20 on the NSE.
The decision to raise funds through a QIP was formally approved by the J&K Bank board earlier this year in July. It is part of the bank's trategic efforts to bolster its financial position and fuel growth initiatives.
A meeting of the Capital Issuance Committee is scheduled on 11 December 2023 to approve the QIP issue price.
"The Bank may at its discretion offer a discount of not more than 5% on the floor price so calculated for the QIP. The Issue price will be determined by the Bank in consultation with the book-running lead managers appointed for the QIP, " the bank said in a statement.
Jammu & Kashmir Bank is a private sector scheduled commercial bank. Its net profit rose 56.5% year-on-year to Rs 381.07 crore in Q2 September 2023. Net Interest Income (NII) rose by 11% YoY to Rs 1333.83 crore in Q2FY24.
The stock has risen 24% in one month, 31% in three months and 141% in one year.