Bank of Baroda (BoB) has put on sale a 4% stake in Clearing Corporation of India (CCIL) in order to raise at least Rs 124 crore, according to a public notice.
The bank has sought bids on a per-share basis, either for a 4% stake, e.i, 20 lakh shares, or for a part stake not less than 5 lakh shares. BoB holds a 5% stake in CCIL.
“The floor price has been fixed at Rs 620 per share and bid price should be equal to or above the floor price. The proposal below the floor price will be summarily rejected,” the bank said in the notice. The last date for submission of bids is August 14.
The prospective buyer of shares of the company should be a user of at least one of the payment systems of CCIL in its ordinary course of business.
CCIL offers clearing and settlement functions for transactions in the Indian money, government securities, foreign exchange and derivative markets. It also provides non-guaranteed settlement for rupee interest rate derivatives and cross currency transactions through the CLS Bank.
Commercial banks and financial institutions cumulatively hold 79% of CCIL’s shares.
BoB’s bid to sell its stake in CCIL is the latest in a series of moves by public sector banks to shed their non-core assets.
In May, IDBI Bank had put on sale its residual 2.5% stake in CCIL. In the September quarter of FY18, IDBI had sold a 2.5% stake in CCIL and made capital gains of Rs 70.96 crore on the sale.