MUMBAI: Central Bank of India has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of its equity shares. The bank proposes to issue 8 crore equity shares of Rs. 10 each for cash at a premium to be decided through a 100 per cent book building process.

To augment capital base

The issue includes a reservation of 40 lakh equity shares for eligible employees.

The proceeds will augment the capital base of the bank to meet the future capital requirements arising out of the implementation of the Basel II standards and the growth in assets, primarily the loan and investment portfolio due to the growth of the Indian economy and for other general corporate purposes, according to a release.

The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.