Indian Bank stock gains after receiving FPO nod

Shares of Indian Bank rose by 3% in morning trade on the BSE today after the company received the government's approval to raise additional equity capital through a follow-on public offer.

Cheering the news, the scrip of the company touched an early high of Rs 230.80, up 3% from the previous close of Rs 224.05 on the Bombay Stock Exchange (BSE).

With today's gain, the stock managed to halt the losing streak it suffered in the previous three trading sessions.

On the National Stock Exchange, the scrip went up by 2.71% to touch a high of Rs 230.95.

The bank yesterday said it has received the government's approval to raise an additional equity capital of Rs 61.40 crore through FPO, which is likely to hit the market by August.

With the raising of Rs 61.40 crore additional equity, the government's stake will go down to 70%, the bank had said.

Meanwhile, the broader market bellwether Sensex was also trading higher by 195.31 points at 18,405.89 at 11 hrs.