The capital raising committee of the board approved raising of additional equity capital by issuance of up to 8.28 crore shares at Rs. 75.55 a equity, Central Bank of India said in a statement.
Thus, the bank would raise Rs. 626.23 crore by allotting shares on preferential basis to LIC.
This would be subject to approval of Government of India, Reserve Bank of India, shareholders and other statutory authorities, it said.
The board has also decided to hold an Extraordinary General Meeting (EGM) of shareholders on December 30 to consider and pass the necessary special resolution and fixed November 28, 2014 as the relevant date for the purpose of determining the issue price, it added.
Shares of the bank closed at Rs. 79.60 per share, down 0.56 per cent on the BSE.