Central Bank of India on Monday opened its qualified institutional placement of shares to raise up to Rs 1,500 crore with an option to upsize by up to Rs 500 crore.
The base issue of the QIP offers over 37 crore shares and a greenshoe option of over 12.3 crore shares. The board approved the indicative price of Rs 40.49 per share, indicating a discount of nearly 13.7% to the last closing price.
The shares will be allotted to winning bidders on April 1 and those will be open to trade after April 3.
Motilal Oswal Investment Advisors Ltd., Systematix Corporate Services Ltd., Batlivala & Karani Securities India Pvt., Emkay Global Financial Services Ltd. and IDBI Capital Markets & Securities Ltd. are the lead book-running managers for the QIP.
The public-sector lender had received board approval for the QIP in April last year and shareholders' nod in July.
Qualified institutional buyers include public financial institutions, scheduled commercial banks, mutual funds, insurance companies, foreign portfolio investors, and foreign institutional investors. It is a way to raise capital quickly and efficiently.
Central Bank of India's third-quarter standalone net profit surged 33.6% year-on-year and asset quality improved. The bank reported a profit of Rs 959 crore, compared to Rs 718 crore in the year-ago period.
Net interest income, the difference between interest revenues and interest expenses, rose 12% from Rs 3,152 crore to Rs 3,540 crore.
Central Bank of India's share price closed 3.1% higher at Rs 46.55 apiece on Monday, compared to a 1.32% jump in the benchmark NSE Nifty 50.
The stock has fallen nearly 20% in the last 12 months and 12% on a year-to-date basis.
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