Corporation Bank slips on plan to buy 4% stake in LIC Nomura Mutual Fund

Corporation Bank fell 1.54% to Rs 41.65 at 9:45 IST on BSE after the bank said it will buy 4% stake in LIC Nomura Mutual Fund Asset Management Company from existing shareholders for Rs 5.66 crore.

The announcement was made after market hours yesterday, 6 January 2016.

Meanwhile, the BSE Sensex was down 368.37 points, or 1.45%, to 25,037.96.

On BSE, so far 9,987 shares were traded in the counter, compared with an average volume of 40,059 shares in the past one quarter. The stock hit a high of Rs 42.30 and a low of Rs 41.50 so far during the day. The stock hit a 52-week high of Rs 78.90 on 22 January 2015. The stock hit a 52-week low of Rs 39.90 on 18 December 2015. The stock had outperformed the market over the past one month till 6 January 2016, rising 1.32% compared with 0.90% decline in the Sensex. The scrip had also outperformed the market in past one quarter, falling 4.94% as against Sensex's 5.67% fall.

The mid-cap state-run bank has an equity capital of Rs 204.50 crore. Face value per share is Rs 2.

Corporation Bank said it is going to acquire 4% stake in LIC Nomura Mutual Fund Asset Management Company from its existing shareholder, Nomura Asset Management Strategic Investments PTE, at Rs 5.66 crore as per the valuation derived, subject to necessary approval and agreement, if any.

Net profit of Corporation Bank rose 17.50% to Rs 188.60 crore on 3.9% rise in operating income to Rs 5434.65 crore in Q2 September 2015 over Q2 September 2014.

As per the shareholding pattern, the Government of India holds 69.11% stake in the bank as at 30 September 2015.

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