Central Bank of India closes Rs 255-cr QIP; issue price set at Rs 15.38

Public sector Central Bank of India on Friday said it has closed its Rs 255-crore qualified institutional placement (QIP) programme and fixed the issue price at Rs 15.38 per share.

The capital raising committee of the bank at its meeting held on September 25 passed the resolution and approved the closure of the issue period for the QIP, it said in a regulatory filing.

The committee "determined and approved the issue price of Rs 15.38 per equity share, which is at a discount of 4.94 per cent to the floor price of Rs 16.18 per equity share as per the formula ...for an aggregate value of Rs 254,99,99,939.68 to be allotted to eligible qualified institutional buyers in the QIP", it said.

In its annual general meeting held on August 7, 2020, the bank had sought shareholders' nod for raising up to Rs 5,000 crore by various modes such as follow on public offer, rights issue and qualified institutional placement, to maintain its capital adequacy ratio.

Stock of Central Bank of India closed at Rs 16.20 apiece on the BSE, down 2.41 per cent from the previous close.