Canara Bank share price surged nearly 7% in the noon trade on Tuesday after the bank announced it has set a floor price of Rs 103.50 a share for its qualified institutional placement (QIP) to raise up to Rs 20 billion.

The bank earlier received shareholders' approval 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 Canara Bank are trading at Rs 125.50, up Rs 7.95, or 6.76% at the Bombay Stock Exchange (BSE) on Tuesday at 12:25 p.m.

The scrip has touched an intra-day high of Rs 126.40 and low of Rs 117.65. The total volume of shares traded at the BSE is 1,906,823.In the earlier session, the shares gained 5.62%, or Rs 6.25, at Rs 117.55.

Currently, the stock is trading down 46.11% from its 52-week high of Rs 232.90 and above 69.94% over the 52-week low of Rs 73.85.