New Delhi: Country's largest insurer LIC has raised its holding in Central Bank of India to 15 percent by picking up another 5.51 percent stake for Rs 626.23 crore.
LIC bought 8.28 crore shares through preferential allotment raising its stake to 15 percent, Central Bank of India said in a filing on the BSE.
Prior to the preferential allotment, LIC had 10.4 percent stake in the bank.
Despite 15 percent stake, the voting right of LIC would be restricted to 10 percent as per the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act 1970.
As per the provisions, no shareholders of a bank other than the central government will be entitled to voting right in respect of any shares held by him in excess of 10 percent of the total voting rights of all the shareholders of the bank.
Last year, Central Bank of India sold 7.10 crore shares to Life Insurance Corporation of India (LIC) and raised Rs 581.61 crore.
The bank allotted 7,10,75,753 equity shares to LIC subsequent to passing of the special resolution by shareholders at their meeting held on July 15, 2014.
The shares of face value Rs 10 were alloted at Rs 81.83 per unit.
Prior to this, LIC had 5.31 percent stake in the bank. The government holding was at 88.63 percent as of June, 2014.