Central Bank of India shares extend fall, crash 17% in 3 days after QIP

Central Bank of India share price: Central Bank of India shares have been on a downward trajectory since it issued shares to QIBs. Central Bank of India stock hit 52-week low on April 2, 2025

Central Bank of India shares extended their decline into a third straight trading day, tumbling 12 per cent on the BSE today, April 2, 2025, weighed by heavy volumes. The stock of the public sector bank (PSB) cracked 11.8 per cent to an intraday and a fresh 52-week low of ₹36.46 per share on the stock exchange on Wednesday. By comparison, the benchmark BSE Sensex was up 0.47 per cent at 10:15 AM.

 

Around 1.94 million shares have changed hands on the BSE, so far, in trade as against a two-week average volume of 0.47 million shares. Combined with the volume on the National Stock Exchange (NSE), the total volume seen on Central Bank of India shares' counter is 25.50 million shares.

 

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Central Bank of India shares have been on a downward trajectory since it issued shares to qualified institutional buyers (QIBs) via the QIP route, on March 28, 2025. Central Bank of India shored up its capital by issuing shares via QIP between March 24 and March 27, 2025.

 

"We wish to inform you that the Capital Raising Committee of Board at its meeting held on March 28, 2025, approved the issue and allotment of 37,04,61,842 (370.46 million) equity shares, to eligible QIBs at an issue price of ₹40.49 per equity share which includes a discount of ₹2.13 i.e., 4.99 per cent of the floor price, aggregating to ₹1,500 crore pursuant to the QIP," it said in a stock exchange filing.

 

With this, the paid-up equity share capital of the Bank stands increased from ₹8,680.94 crore, consisting of 8,680.94 million equity shares, to ₹9,051.40 crore, consisting of 9,051.40 million equity shares of ₹10 each.

 

Among the notable QIB investors, Life Insurance Corporation of India picked 15.88 per cent shares of the total shares on offer in the QIP, National Pension System (NPS) Trust picked 10.99 per cent stake, and Punjab National Bank, Canara Bank, and Bank of Baroda picked 5.29 per cent stake each.

 

Including today, Central Bank of India shares have crashed 17 per cent on the BSE. By comparison, the benchmark Sensex index has slipped 1.9 per cent during the period.

 

Central Bank of India is one of the oldest commercial banks in India, owned by the Central Government. The bank's lending business focuses on three main verticals -- retail, agriculture, and corporate.

 

The Retail business of CBI focuses on loans towards housing, retail trade, automobiles, consumer durables, education, and other personal loans. Agricultural lending offers direct financing to farmers for production and investment, as well as indirect financing for infrastructure development and credit to suppliers of agricultural inputs.

 

Under Corporate lending, Central Bank provides loans to mid-sized and small businesses, along with government entities.

 

Central Bank of India is a BSE200 stock with a market capitalisation of ₹33,771 crore. Central Bank of India stock hit a record high of ₹211.86 per share on November 8, 2010. Its 52-week high, meanwhile, stands at ₹72.99 per share, touched on June 3, 2024, on the BSE.

 

On the contrary, Central Bank of India shares hit a lifetime low of ₹10.04 per share on October 19, 2020.