Central Bank of India approves raising of Equity Capital by conversion of IPDI capital of Rs. 583 crore way of preferential allotment

Central Bank of India has announced that Government of India, Ministry of Finance vide letter dated March 31, 2017 conveyed its in principle approval to convert the entire Innovative Perpetual Debt Instruments (IPDI) capital of Rs. 583 crore held by Government of India (GOI) into equity share capital through preferential allotment in favour of GOI, at such conversion rate including premium, as may be determined in accordance with Regulations 76 or 76A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as may be applicable read with Regulation 76B of the said Regulations, subject to approval of Reserve Bank of India, Shareholders, Stock Exchanges and other statutory authority(ies), if any including Securities and Exchange Board of India. Based on the abovesaid approval, Capital Raising Committee of the Board of Directors at their meeting held on March 31, 2017 approved the proposal to extinguish with immediate effect i.e. w.e.f. March 31, 2017, the entire 5830 IPDI of Rs. 10 lac each aggregating to Rs. 583 crore and decided to credit the capital funds of Rs. 583 crore into Share Application Money Account w.e.f. March 31, 2017.

Accordingly, the aforesaid entire IPDI has been extinguished w.e.f. March 31, 2017 and necessary corporate action to debit the entire 5830 IPDI from accounts in CDSL (ISIN INE483A09237) will be executed in due course of time. Further, all required steps for issuance and allotment of equity shares to President of India (Government of India) will also be taken shortly.

Shares of CENTRAL BANK OF INDIA was last trading in BSE at Rs.105.9 as compared to the previous close of Rs. 104.9. The total number of shares traded during the day was 8799388 in over 3086 trades.

The stock hit an intraday high of Rs. 108.5 and intraday low of 104. The net turnover during the day was Rs. 936931614.

Source : Equity Bulls

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