Share price of Centrum Capital gained around four per cent on Wednesday, August 25, a day after the company's board approved the transfer of the entire business of its two wholly-owned material subsidiaries to its proposed step-down subsidiary through a slump sale. On Wednesday, Centrum Capital opened on the BSE at Rs 35.90, swinging to an intra day high of Rs 37.50 and an intra day low of Rs 34.70, throughout the trading session.
On August 24, the company's board of directors considered and approved the sale of the entire business of two of its wholly owned material subsidiaries - Centrum Financial Services Limited as well as Centrum Microcredit Limited to its proposed step down subsidiary (- a proposed small finance bank), subject to the regulatory approvals.
The rationale of the transaction is the pooling of business of the subsidiaries into the proposed small finance bank, according to a regulatory filing by Centrum Capital to the stock exchanges. The process will be done as per the in-principle approval received from the Reserve Bank of India (RBI) to set up the small finance bank.
In June this year, Centrum Financial Services Limited received the “in-principle” approval from RBI to start a small finance bank, which will help the company in taking over the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank.
On the NSE, Centrum Capital opened at Rs 35.50, touching an intra day high of Rs 37.50 and an intra day low of Rs 34.70, in the session today.
On Wednesday, shares of Centrum Capital settled 3.98 per cent higher at Rs 35.25 apiece on the BSE.
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