Central Bank of India rises on fund raising plan

Shares of Central Bank of India are up over  2% to Rs 67.55 on BSE after the bank said that a special committee of the board has approved raising funds by issuing equity shares.

Central Bank of India said that the Capital Raising Committee of the Board of Directors of the Bank at its meeting held on 2 March 2016, approved raising of additional equity capital by issuance and allotment of upto 3.14 crore equity shares of the face value of Rs 10 each at the issue price of Rs 52.66 per equity share, aggregating to Rs 165.56 crore to Life Insurance Corporation (LIC) of India on preferential basis, subject to approval of Government of India, Reserve Bank of India, shareholders and other statutory authorities (if any).

Further, the committee also noted that the bank has sought approval of Government of India (GoI) for raising additional equity capital by conversion of entire 5,830 Innovative Perpetual Debt Instruments (IPDI) of the face value of Rs 10 lakh each, aggregating to Rs 583 crore, held by GoI, into equity shares to be issued and allotted to GoI on preferential basis.

At 11:32 AM, the stock was up 2% at Rs 67.58 on the BSE. A combined 7 lakh shares changed hands on the counter on the BSE and NSE so far.