State-owned Central Bank of India proposes to raise an estimated ₹540 crore by selling stake on preferential basis to Life Insurance Corporation. The board approved raising additional capital by issuance and allotment of up to 7.10 crore equity shares of face value of ₹10 each to LIC on preferential basis, Central Bank of India said in a BSE filing. On Friday, the shares of the bank closed 5.21 per cent lower at ₹76.45 apiece, on the BSE. At this rate, the stake proposed to be sold by Central Bank will fetch it ₹543 crore.
LIC currently holds 7.34 crore shares, or 5.44 per cent stake, in Central Bank of India.