Dena Bank jumps on preferential allotment of shares to govt

Dena Bank jumped 4.6% at Rs 61.75 on the Bombay Stock Exchange (BSE) after the company in its extraordinary general meeting (EGM) on 24th December decided to issue 11.85 crore preferential shares to government at Rs 59.03/share after the government infused capital funds worth Rs 700 crore into the public sector bank.

The government's holding in the bank will increase to 66.57% from the current 55.24% after the issuance of equity shares.  

The bank is also exploring options to raise capital through qualified instituional placement (QIP), said a statement issued by the bank.

The scrip touched a high of Rs 62.25 and a low of Rs 59.50 on the BSE today. A total of 3,900,057 shares changed hands at the counter on both BSE and NSE.