Central Bank of India Said to Raise $566 Million in Rights Sale

Central Bank of India (CBOI), a state-run lender, raised about 25 billion rupees ($566 million) in a rights share sale that closed today, according to two people familiar with the transaction.

The shares were sold at 103 rupees each, a price set last month by the Mumbai-based bank, the people said, declining to be identified before an announcement. The stock climbed 1.4 percent to 145.95 rupees at the 3:30 p.m. close.

Not including Central Bank’s rights offer, Indian companies raised 104 billion rupees in equity and rights sales locally in 2011, a fifth of the amount sold in the same period last year, according to data compiled by Bloomberg. A quarter of this year’s sales were by banks, data show.

ICICI Securities Ltd., Citigroup Inc. (C), Enam Securities Pvt., IDBI Capital Market Services Ltd., Royal Bank of Scotland Group Plc (RBS) and SBI Capital Markets Ltd. managed the transaction, according to a Jan. 25 sale document to the markets regulator.

Citigroup is ranked first in managing India share sales in 2011, followed by SBI Capital, according to the Bloomberg data.

To contact the reporter on this story: Ruth David in Mumbai at rdavid9@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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