Central Bank shares slip 5% after launching QIP at floor price of Rs 42.62

Central Bank of India shares slipped 5 per cent in trade on Tuesday, March 25, 2025, logging an intraday high at ₹44.5 per share on BSE. The selling pressure in the stock came after the company launched its qualified institutional placement (QIP) on March 24. 

 

Around 11:48 AM, Central Bank share price was down 4.7 per cent at ₹44.65 per share on BSE. In comparison, the BSE Sensex was down 0.01 per cent at 77,979.23. The market capitalisation of the company stood at ₹38,760.39 crore. The 52-week high of the stock was at ₹72.99 per share and the 52-week low was at ₹40.86 per share.

 

 

The floor price for the QIP was set at ₹42.62 per share which was a discount of 9 per cent from Monday's closing at Rs 46.85 per share on BSE. 

 

"The Capital Raising Committee of the board of the Bank has, at its meeting held today i.e. March 24, 2025, inter alia, ...approved and adopted the Preliminary Placement Document dated March 24, 2025, and the application form dated March 24, 2025, in connection with the Issue (“Preliminary Placement Document)," the filing read.

 

Further, the board also approved the opening of the QIP issue on March 24, 2025. 

 

QIP is a method of raising capital in India, where listed companies can issue equity or equity-linked securities (such as shares, debentures, or bonds) to institutional investors, such as mutual funds, banks, insurance companies, or pension funds.

 

Central Bank of India, a public sector banking institution, is one of the oldest and largest commercial banks in India. The principal business is providing banking and financial services with a wide range of products and services to individuals, commercial, enterprises, large corporates, public bodies and institutional customers.

 

The bank's deposit-taking and lending business is divided into three main areas namely retail agriculture and corporate. The retail business provides financial products and services such as loans and advances for housing retail trade automobiles consumer durables education and other personal loans to their retail customers. 

 

The agricultural banking business offers direct financing to farmers for production and investment as well as indirect financing for infrastructure development and credit to suppliers of agricultural inputs. The Bank provides commercial banking products and services to corporate and commercial customers including mid-sized and small businesses and government entities.

 

In the past one year, Central Bank shares have lost 18 per cent against Sensex's rise of 7.6 per cent.