Dhanlaxmi Bank soars 20% on preferential issue plans

The bank will allot 59.65 million shares at a price of Rs 39 per share aggregating to an amount of Rs 233 crore via preferential allotment.

Dhanlaxmi Bank has soared nearly 20% to Rs 35.80 after the board of private sector lender approved the allotment of equity shares at a price of Rs 39 per share on a preferential basis. The issue price is 31% higher than Monday’s closing price of Rs 29.85 on the Bombay Stock Exchange (BSE).

"The board of directors of the bank has approved to allot 59.65 million equity shares of Rs 10 each at a premium of Rs 29 per equity share aggregating to an amount of Rs 232.64 crore through preferential allotment," Dhanlaxmi Bank said in a statement.

"An Extraordinary General Meeting (EGM) of the bank is scheduled to be held on March 29, 2014 to take shareholder approval," it added.

The stock opened at Rs 29.80 and hit a low of Rs 29.35 on the BSE. A combined nearly 6 million shares have already changed hands on the counter till 1415 hours against an average sub 2 million shares that were traded daily in past two weeks on the BSE and NSE.