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Central Bank of India IPO to raise Rs816 cr

Central Bank of India IPO to raise Rs816 cr
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First Published: Fri, Jul 13 2007. 07 09 PM IST
Updated: Fri, Jul 13 2007. 07 09 PM IST
PTI
Mumbai: Public sector lender Central Bank of India said on 13 July it will hit the equity market on 24 July through an IPO to raise up to Rs816 crore and has fixed the price band at Rs 85-102 per equity share.
The bank is offering 80 million shares of Rs10 each at a price to be decided through the 100% book-building process. It has reserved 4 million shares for employees.
Post-issue, the government’s shareholding in the bank would come down to 80.2%. The issue would constitute 24.68% of the pre-issue and 19.8% of the post-issue paid-up equity capital of the bank.
“We have projected a 21% growth in deposits and a 25% rise in advances for FY08 and expect better credit offtake in the second half of FY08. We are also awaiting RBI’s permission for opening representative offices in Dubai, Singapore, Hong Kong and Doha,” chairman and managing director, H A Daruwalla, told reporters here.
The issue proceeds will be utilised for technology upgradation and to augment the capital base to meet future capital requirements arising out of the implementation of Basel-II standards, she said.
The bank is focussing on three main areas - corporate, retail and agriculture, Daruwalla said, adding it has given considerable thrust to lending to the priority sector, including agriculture.
It has a network of 3,194 branches, comprising 1,341 in rural areas, 759 semi-urban and 519 metros.
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First Published: Fri, Jul 13 2007. 07 09 PM IST