State-owned Canara Bank on Thursday said it expects to raise Rs 716 crore by part selling the stake in its subsidiary Can Fin Home Finance.
The board has given approval for the sale of 13.45 per cent stake in the mortgage firm.
Currently, Canara Bank holds 44.10 per cent stake in the mortgage firm as of December 2016. Following stake dilution promoter stake will come down to about 30 percent.
The base price has been fixed at Rs 2,000 per share for Can Fin Homes.
As per the base price, the bank would be able to raise Rs 716 crore by selling its part stake in the housing finance company.
Canara Bank has empanelled merchant/investment bankers for sourcing prospective investors.
In December last year, Canara Bank had said it has proposed to bring down stake in its housing finance subsidiary Can Fin Homes to 30 percent as part of its strategy to exit non-core businesses.
