Centurion Bank To Raise Rs 90.80 Cr Via Rights Issue

Mumbai, March 28 | Updated: Mar 29 2004, 05:30am hrs
Centurion Bank ill raise Rs 90.80 crore through rights issue of equity shares priced at Rs four per share including a premium of Rs three. The equity shares will be offered to the shareholders of the bank in the ratio of two equity shares of the face value of Re one each for every five equity shares and is slated to open around May 2004.

The proposal of the rights issue was approved on Friday in a meeting of the committee of the banks board. The rights issue is part of the restructuring and recapitalization programme of the bank. As per the restructuring plan, Centurion Bank was to raise Rs 65 crore. The bank has an ambitious plan and also we wanted to reward our shareholders by offering the shares on rights basis. Shailendra Bhandari, managing director, Centurion Bank told iFE explaining the rationale for raising a higher amount.

The banks capital adequacy ratio will be higher than the prescribed minimum of nine per cent post the rights issue, Mr Bhandari said. JM Morgan Stanley are the lead managers to the issue.

The bank has completed its first phase of restructuring, which involved a fresh capital infusion of Rs 154 crore by existing principal shareholders and new investors led by Sabre Capital.