Dena Bank gains after preferential allotment

Dena Bank rose 2.09% to Rs 58.55 at 14:42 IST on BSE after the bank said it has allotted total shares aggregating about 6.90 crore shares at Rs 52.91 per share to Life Insurance Corporation of India and GIC of India on preferential allotment basis.

The announcement was made during trading hours today, 27 March 2014.

Meanwhile, the S&P BSE Sensex was up 191.23 points or 0.87% at 22,286.53.

On BSE, so far 2.62 lakh shares were traded in the counter as against average daily volume of 2.55 lakh shares in the past one quarter.

The stock hit a high of Rs 58.80 and a low of Rs 57.35 so far during the day. The stock had hit a 52-week high of Rs 98.25 on 20 May 2013. The stock had hit a 52-week low of Rs 41.85 on 28 August 2013.

The stock had outperformed the market over the past one month till 26 March 2014, surging 11.58% compared with the Sensex's 5.28% rise. The scrip had, however, underperformed the market in past one quarter, sliding 6.9% as against Sensex's 4.84% rise.

The state-run bank has equity capital of Rs 468.64 crore. Face value per share is Rs 10.

Dena Bank said that the Issue Committee of the Board of the Bank at its meeting held on Wednesday, 26 March 2014, allotted 5.32 crore and 1.58 crore equity shares at Rs 52.91 per share to Life Insurance Corporation of India (LIC) and GIC of lndia, respectively on preferential basis. Consequent upon this issue, the Government of lndia holding in the bank will be at 58.01%.

The equity shares so allotted shall rank pari-passu with the existing equity shares of the bank including dividend, if any and will be locked in for a period of one year from the date of trading approval received from stock exchanges, as per the SEBI (ICDR) Regulations, 2009, Dena Bank said.

Dena Bank's net profit declined 67.2% to Rs 67.80 crore on 10.6% growth in total income to Rs 2662.80 crore in Q3 December 2013 over Q3 December 2012.

Dena Bank is one of the leading public-sector banks.

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