Corporation Bank gains 4% after government hikes stake

Government’s holding in the bank has increased to 86.77% from 79.87%.

Oct 12, 2018 05:10 IST India Infoline News Service

Shares of Corporation Bank were trading 4% higher in the morning session on Friday after the bank allotted 86.90cr equity shares to the government.

"The bank has allotted 86.90cr equity shares of Rs2 each at a premium of Rs27.40 per share, that is at an issue price of Rs29.40 per share to government of India on a preferential basis," the bank said in a statement to the exchanges on Thursday after market hours.

This has increased the government’s holding in the bank to 86.77% from 79.87%. Consequently, the issued, subscribed, and paid-up capital of the bank gets raised to 253.45cr equity shares of Rs21 each, the bank added. 

Corporation Bank is currently trading at Rs23.80, up by Rs0.95 or 4.16% from its previous closing of Rs22.85 on the BSE. The scrip has opened at Rs23.60. It has touched a high and low of Rs24.10 and Rs23.45, respectively. So far 1,37,916 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs3,805.78cr.

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