• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Eight crore shares to be issued at a price band of Rs 85-102

Paul Noronha

In the market: Ms H. A. Daruwalla, Chairperson and Managing Director, Central Bank of India, and Mr Albert Tauro, Executive Director, at a press conference in Mumbai on Friday.

Our Bureau

Mumbai, July 13

Central Bank of India plans to raise additional capital, which could go up to Rs 816 crore, at the higher end of the price band, through an initial public offering. The bank will issue 8 crore shares of Rs 10 each at a price to be decided by 100 per cent book building process in the band of Rs 85-Rs 102.

The issue opens on July 24 and closes on July 27.

After the issue, the shareholding of the Government will come down to 80.20 per cent, said Ms H.A. Daruwalla, Chairman and Managing Director, Central Bank of India. Currently, the bank is wholly owned by the Government.

Another public sector bank, Indian Bank raised capital through an initial public offering in February. “Central Bank of India is comparatively better placed than Indian Bank because of Central Bank’s size, operations and branch network. The NPA recoveries by the Central Bank of India are also taking place at a very fast pace, which is a good sign,” said Ms Sarika P. Lohra, Banking Analyst, Angel Broking.

The bank’s red herring document claimed that its business per employee has grown to Rs 3.76 crore as of March 2007 from Rs 2.84 crore in the previous year. It similarly claims improvement on other parameters such as net profit per employee and return on assets. Central Bank of India is the second public sector bank to hit the capital markets this year.

Of the 19 nationalised banks, now, United Bank of India and Punjab & Sind Bank are the only two banks which have not tapped the equity markets.

Related Stories:
Central Bank of India's IPO in June

More Stories on : Public Sector Banks | Outlook | IPOs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Weak monsoon trims surplus rainfall

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line