Central Bank of India jumps after fixing price for preferential share allotment

Central Bank of India jumped 9.51% to Rs 64.50 at 15:07 IST on BSE after the bank announced that it has fixed the issue price at Rs 58.85 per equity share for preferential issue of shares aggregating Rs 1800 crore in favour of Government of India.

The announcement was made during trading hours today, 5 November 2013.

Meanwhile, the S&P BSE Sensex was down 244.35 points or 1.15% at 20,995.01.

The scrip rose on high volumes. On BSE, 16.98 lakh shares were traded in the counter as against average daily volume of 1.16 lakh shares in the past one quarter.

The stock was volatile. The stock spurted as much as 16.72% at the day's high of Rs 68.75 so far during the day. The stock lost as much as 1.44% at the day's low of Rs 58.05 so far during the day. The stock had hit a 52-week high of Rs 95.60 on 9 January 2013. The stock had hit a 52-week low of Rs 48.90 on 28 August 2013.

The stock had outperformed the market over the past one month till 3 November 2013, advancing 14.04% compared with the Sensex's 6.72% rise. The scrip had, however, underperformed the market in past one quarter, gaining 3.15% as against Sensex's 10.83% rise.

The mid-cap state-run bank has equity capital of Rs 1044.58 crore. Face value per share is Rs 10.

Central Bank of India today, 5 November 2013, announced that the Capital Raising Committee of the board of the bank at its meeting held today, 5 November 2013, has fixed the issue price at Rs 58.85 per equity share for preferential issue of equity shares in favour of Government of India (GoI). Accordingly, the bank will allot 30.58 crore equity shares to GoI on preferential basis, thereby raising Rs 1800 crore.

The Government of India (GoI) currently holds 85.31% stake in Central Bank of India (as per the shareholding pattern as on 30 September 2013).

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