Financial Daily from THE HINDU group of publications
Tuesday, Mar 28, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 28, 2006 |
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Markets
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Stock Markets Money & Banking - Private Banks Columns - Ear to the ground Centurion Bank share sale fetches Rs 98 cr Our Bureau
The deal Four crore shares of Centurion Bank of Punjab change hands Radha Madhav Investments picks up at Rs 24.5 a share Court ruling restricted the bank not to offload shares at less than Rs 24 a share
Mumbai , March 27 The trustees of Centurion Bank Stock Trust today sold four crore shares of Centurion Bank of Punjab for Rs 98 crore. These shares were held in the trust as part of the court order, while Centurion Bank was carrying on its restructuring process. The shares were sold at an average price of Rs 24.50 and the entire lot of four crore was bought by Radha Madhav Investments Ltd, according to data from the BSE. The Court mandate was that the shares could not be sold below Rs 24. The gains that accrue from this sale would be utilised for prudential provisioning on the bank's asset book and further strengthening of its balance-sheet. "This will also sharply reduce the non-performing assets of the bank," said Mr Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab. "This was pre-dating our merger with Bank of Punjab. The shares were vested with the Trust during the recapitalisation and restructuring of Centurion Bank," he added. The bank is the sole beneficiary of the Trust. The stock opened at Rs 25 at the BSE today and touched an intra-day high of Rs 26.25. It ended trade at Rs 25.80. Over 13 lakh shares were traded at this counter at the BSE today. The total share capital of the company is over Rs 128 crore and this deal represents three per cent of the bank's share capital.
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