Central Bank files IPO prospectus

Central Bank of India has filed its draft prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offer of eight crore shares.

The funds raised from the issue would augment the bank's capital base for meeting future capital requirements arising out of implementation of the Basel II standards and the growth in the assets, primarily loan and investment portfolio, and for other purposes, according to the draft red herring prospectus.

The issue is being made through a 100% book building process. Of the total size, 60% would be alloted to qualified institutional buyers (QIB), while 40 lakh shares are reserved for the bank's employees.

Although the price band is yet to be fixed, market sources said that the bank is likely to raise about Rs 1,000 crore.

The Mumbai-based public sector bank posted a net profit of Rs 49.8 crore in 2006-07 and income of Rs 670.9 crore.

The bank has appointed IDBI Capital markets, Kotak Securities, ICICI Securities, Citigroup and Enam Financials as the lead book-runners. Intime Spectrum has been appointed as registrar to the issue.