Centurion to raise Rs 500 cr

Centurion Bank of Punjab (CBoP) is raising around Rs 500 crore through a qualified institutional placement

The bank will issue 12.26 crore shares of Re 1 rupee each at an issue price of Rs 40.75 per share, aggregating Rs 499.99 crore. The issue price is above the floor price of Rs 40.34 a share.

Kotak Mahindra Capital, Deutsche Equities India and SSKI Corporate Finance acted as the global joint coordinators to 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 per cent.

"We have decided to raise funds to support the bank's growth plans. The bank has ambitious growth plans after the merger of Lord Krishna Bank. This will also enable the bank meet the capital adequacy norms under Basel II,'' said Anil Jaggia, chief operating officer, of CBoP in an earlier interaction.

In August, the bank had received the Reserve Bank of India (RBI) approval to merge LKB with itself. The bank is also planning to enter the business of pension fund management and create a subsidiary for the purpose.

In January, the bank had raised around Rs 184 crore through a preferential allotment to India Advantage Fund V through its trustee, the Western India Trustee and Executor Company, and acting through its investment manager, ICICI Venture Funds Management Company.