Centurion Bank Scrip Soars 10 Per Cent

The Centurion Bank scrip moved up sharply by 10.05 per cent today to close at Rs 9.30 on the Bombay Stock Exchange (BSE).

The scrip has been moving northwards in the past few days on back of rumours of a large chunk of shares changing hands.

The scrip has moved up from Rs 6.95 in November 1 to Rs 9.30 today on the BSE --- registering a rise of 33.81 per cent. The increase in share price has also been backed by huge trading volumes.

Traded volumes which were at a meagre 6437 shares on the BSE on November 1 soared to 1,64,000 today. The volumes on the National Stock Exchange rose from 18,044 shares to 2,42,000 shares.

Interest in the bank is soaring as the bank's promoter Dev Ahuja has given up the rights of 26.2 per cent stake in the bank which he held through TCFC Finance Ltd (TFL).

TFL has now authorised the bank to sell the stake to a strategic investor. The bank is coordinating along with IFC Washington in selling off the TFL stake to a strategic partner.

According to observers, the banks is now a target for other private sector banks or even new players who want to enter the banking sector.

Bank officials are however clueless about the sudden rise in price and volumes. The bank will have to pass a board resolution for placing the 26 per cent stake in the bank with a strategic investor.

Ahuja's stake in the bank has been bought down to around 8.5 per cent. The other major stakeholders are Keppel Bank which holds through Kephinance Investment (Mauritius) Pte Ltd around 17.5 per cent stake followed by Asian Development Bank (10.22 per cent) and International Finance Corporation (8.36 per cent).