Dena Bank gains after preferential share allotment to government

Dena Bank rose 2.6% to Rs 63.20 at 15:24 IST on BSE after the bank said it has allotted 11.85 crore equity shares of the bank at Rs 59.03 per share to the Government of India on preferential allotment basis.

The announcement was made during trading hours today, 27 December 2013.

Meanwhile, the S&P BSE Sensex was up 117.68 points or 0.56% at 21,192.27.

On BSE, so far 9.18 lakh shares were traded in the counter as against average daily volume of 9.67 lakh shares in the past one quarter.

The stock hit a high of Rs 64 and a low of Rs 62.50 so far during the day. The stock had hit a 52-week high of Rs 128 on 7 January 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 December 2013, advancing 13.44% compared with the Sensex's 3.18% rise. The scrip had also outperformed the market in past one quarter, surging 31.06% as against Sensex's 5.94% rise.

The state-run bank has equity capital of Rs 350.06 crore. Face value per share is Rs 10.

Dena Bank said that the equity shares allotted to the Government of India (GoI) 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 3 years from the date of trading approval, as per the Sebi (ICDR) Regulations, 2009.

Consequent upon the allotment of shares, the GoI's holding in Dena Bank increased to 66.57% from 55.24%.

Dena Bank's net profit declined 55.2% to Rs 107.38 crore on 11.7% growth in total income to Rs 2599.94 crore in Q2 September 2013 over Q2 September 2012.

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