J&K Bank has initiated a Qualified Institutional Placement (QIP) with the aim of raising ₹750 crore. This move comes as part of the company’s efforts to strengthen its financial position and fund growth plans. The Bank stock surges 7% as the market open and currently trading at Rs. 130.65 (4.35%) up.

During a board meeting on July 15, the decision to raise funds through a QIP was formally approved. The board set the floor price for the issue at ₹112.66 per share, reflecting a 10.02% discount to the company’s previous closing price of ₹125.20 on the National Stock Exchange (NSE).

The QIP allows companies to raise capital by issuing securities to qualified institutional buyers. In this case, Jammu and Kashmir Bank is targeting to secure ₹750 crore through the placement. The bank has also indicated it may offer a discount of up to 5% on the floor price, at its discretion, potentially to attract investors.