Mumbai: Central Bank of India floated an initial public offering (IPO) that was subscribed 62 times.
The public sector lender had put out 80 million equity shares of Rs10 each for sale at an issue price of Rs102.
The IPO attracted 7.8 million applications during a subscription window of 24-27 July. The IPO includes a reservation of 4 million equity shares for eligible employees of the bank, and the balance of 76 million equity shares were available to the public.
The issue was rated by Credit Analysis & Research Ltd (CARE), an Indian credit rating agency, as CARE IPO 4 that implies above-average fundamentals.
Proceeds from the issue will be utilized to boost the bank’s capital base to meet future capital requirements for implementing Basel II standards and for accommodating growth in assets, primarily in the loan and investment portfolios.
Central Bank of India also plans to list its equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in the near future.
ICICI Securities Primary Dealership Ltd, Citigroup Global Markets India Pvt. Ltd, Enam Financial Consultants Pvt. Ltd, IDBI Capital Market Services Ltd and Kotak Mahindra Capital Co. Ltd were the lead managers of the IPO.