Pref issue: Central Bank to allot more shares to Centre

Central Bank of India has hiked the number of shares to be allotted to the GoI in the preferential allotment to be made for raising up to Rs 1,000 crore.

The bank has cut the number of shares to be allotted to the Life Insurance Corporation of India under the preferential share proposal.

Modifying the earlier notification, Central Bank said that the preferential allotment committee of the board of directors on March 24 approved that the total number of equity shares to be offered to the Government of India and Life Insurance Corporation of India on preferential basis is 94,688,003 equity shares (same as proposed earlier.

The allotment price would be Rs 105.61 (including a premium of Rs 95.61) per equity share aggregating up to Rs 1000 crore (including premium). Out of the 94,688,003 equity shares, GoI will be offered 64,009,090 equity shares and remaining 30,678,913 shares will be offered to LIC.

According to the earlier proposal that the board of directors approved on February 29 for raising up to Rs 1,000 crore (including premium), the share of GoI was up to 62,357,687 equity shares and that of LIC was up to 32,330,316 shares.

There is no change in the premium to be charged and the total number of shares to be allotted on preferential basis to both GoI and LIC. The change has been made only in the proportionate allotment.