Central Bank of India to raise Rs.1000 crore

Central Bank of India has now announced with reference to approval of issue of equity shares of face value of Rs. 10/- each at such price as may be decided as per SEBI (ICDR) Regulations, 2009 on preferential basis in favour of Government of India by Board of Directors at its meeting held on January 31, 2012. In modification of the abovesaid proposal, the Board of Directors of the Company at its meeting held on February 29, 2012, has considered and approved raising of equity capital upto Rs. 1,000/- crore (including premium) by issuance of upto 62,357,687 equity shares of face value of Rs 10/- each to Government of India (GoI) & upto 32,330,316 equity shares of face value of Rs 10/- each to Life Insurance Corporation of India (LIC), on preferential basis at a premium of Rs. 95.61 determined as on February 24, 2012 being the Relevant Date in terms of SEBI ICDR Regulations, subject to all necessary Regulatory approvals and compliance with the SEBI ICDR Regulations, 2009.

The Bank has also decided to convene an Extra-ordinary General Meeting of the Shareholders of the Bank on March 27, 2012 to consider and if thought fit to pass with or without modification, a special resolution for issuance of equity shares on preferential basis to GoI and LIC as mentioned above.

The Central Bank of India stock was trading at Rs.101.25, down by Rs.0.90 or 0.88%. The stock hit an intraday high of Rs.103.10 and low of Rs.100.

The total traded quantity was 1.51 lakhs compared to 2 week average of 2.86 lakhs.

Source : Equity Bulls

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