CBoP to raise Rs500cr via pvt equity placement

In order to meet capital adequacy norms under Basel II and to support business growth, Centurion Bank of Punjab (CBoP) will raise Rs 500 crore of equity capital by issuing equity shares to institutional investors.

The bank will be issuing 12.26 crore equity shares of Re 1/- each at an issue price of Rs 40.75 per equity share aggregating Rs 499.99 crore. The issue price is above the floor price of Rs 40.34 per share. Kotak Mahindra Capital, Deutsche Equities India and SSKI Corporate Finance acted as the Global Joint Coordinators for this Issue.

The bid closing date pursuant to the proposed placement of equity shares of the bank was September 20, 2007.

At the end of the June 2007, the capital adequacy ratio was 10.97%. The bank's scrip was trading at Rs 42.75 at BSE today.