Central Bank shares zoom 16 per cent on fund raising plans

The capital raising committee of the board of directors at its meeting on Tuesday considered and approved raising of equity capital by issuance and allotment of up to 158,38,45,063 equity shares.

New Delhi:Central Bank of India on Tuesday said its board of directors has approved to allot shares on a preferential basis to the government to raise up to Rs 3,353 crore.

The capital raising committee of the board of directors at its meeting on Tuesday considered and approved raising of equity capital by issuance and allotment of up to 158,38,45,063 equity shares aggregating to Rs 3,353 crore to the Government of India on a preferential basis, it said in a regulatory filing.

The bank said the board approval is subject to the nod of the shareholders, Reserve Bank of India, Securities and Exchange Board of India and other statutory authorities.

Central Bank of India stock on Wednesday surged about 16 per cent after the company's board approved to allot shares on a preferential basis to the government to raise up to Rs 3,353 crore.

At the BSE, shares of the company soared 15.87 per cent to Rs 20.80 apiece.

On the NSE, it climbed 15 per cent to Rs 20.70.