Shares of the Central Bank of India Limited took a sharp fall on April 2, 2025, plunging 11.74% to hit a 52-week low of ₹36.46 on the National Stock Exchange (NSE). By 10:25 AM, the stock was trading at ₹37.26, marking a 9.8% decline. The sharp decline comes in the wake of the bank's recent move to raise ₹1,500 crores via a Qualified Institutional Placement (QIP), with ₹238 crores coming from Life Insurance Corporation of India (LIC).
Despite this setback, some investors may view this dip as an opportunity to buy shares online at a lower price.
Fundraising details and market reaction
The Central Bank of India issued 37.04 crores of equity shares at a price of ₹40.49 per share, with a discount of ₹2.13 (4.99%). The major allottees included:
While the infusion of funds aims to strengthen the bank's financial position, investors have reacted cautiously, leading to a decline in share price.
Should investors consider buying the dip?
Despite the recent fall, the bank's financials remain strong. In the Q3 FY24-25, the bank reported a 33% rise in net profit to ₹959 crores, compared to ₹718 crores a year ago. Total income also increased by 6.56%, reaching ₹9,739 crores.
For investors planning to buy shares online, the current price drop may present an attractive entry point. However, market volatility and investor sentiment around the QIP impact should be considered before making a decision.
Summing up
The Central Bank of India's share price plunged nearly 12%, hitting a 52-week low after its ₹1,500 crores QIP fundraising. The stock is facing short-term pressure despite strong financial performance in the latest quarter.
As of 11:50 AM on April 2, 2025, the shares were trading at ₹37.41, reflecting a 9.44% decline for the day. While some investors may see this as an opportunity to buy shares online, it is essential to assess the long-term outlook before making investment decisions.
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