Thursday, March 17, 2011

Central Bank Rights Issue To Open on March 24

Central Bank of India announced its opening and closing date for the Rs 2,500 crore rights issue as of March 24 and April 7 respectively. The rights issue entails issuing equity shares in the ratio of 3 scrips for every 5 shares held by shareholders. 

The decision was taken by the committee of directors, constituted for the rights issue on Monday. Preceding the decision, the bank informed the Bombay Stock Exchange about the the same in a regulatory disclosure. The issue price has been decided upon as Rs 103 for every right equity shares with March 18 being fixed as record date for the purpose of ascertaining shareholders entitled for rights issue. 

The rights issue will infuse capital in the tunes of Rs 2,016 crore with the bank proposing to offer 24,24,84,876 shares of Rs 10 each, in addition to the present paid up capital of 40,41,41,460 equity shares. This capital would be raised by month-end, being part of the recapitalization package announced by the government last year.