Dhanlaxmi Bank extends Tuesday's rally

Dhanlaxmi Bank rose 1.32% to Rs 34.65 at 10:14 IST on BSE, with the stock extending Tuesday's rally triggered by the bank's board approving issue of 5.96 crore shares at Rs 39 per share aggregating to Rs 232 crore through preferential allotment.

Meanwhile, the S&P BSE Sensex was up 27.38 points or 0.13% at 21,237.11.

On BSE, so far 1.83 lakh shares were traded in the counter as against average daily volume of 88,076 shares in the past one quarter.

The stock hit a high of Rs 35.45 and a low of Rs 34.40 so far during the day. The stock had hit a 52-week high of Rs 55.35 on 11 March 2013. The stock had hit a 52-week low of Rs 24.20 on 6 August 2013.

The stock had underperformed the market over the past one month till 4 March 2014, advancing 0.15% compared with the Sensex's 4.94% rise. The scrip had also underperformed the market in past one quarter, sliding 16.28% as against Sensex's 2.42% rise.

The small-cap private sector bank has equity capital of Rs 125.93 crore. Face value per share is Rs 10.

Shares of Dhanlaxmi Bank have rallied 16.08% in two trading sessions from Rs 29.85 on 3 March 2014, after the bank during market hours on Tuesday, 4 March 2014 said its board of directors by circulation on 1 March 2014 has approved to issue and allot 5.96 crore shares at Rs 39 per share aggregating to Rs 232 crore through preferential allotment. The stock had rallied 14.57% to settle at Rs 34.20 on Tuesday, 4 March 2014.

Dhanlaxmi Bank has scheduled an Extraordinary General Meeting (EGM) on 29 March 2014 to take necessary approval from the shareholders for the preferential share allotment.

Dhanlaxmi Bank reported a net loss of Rs 119.37 crore in Q3 December 2013 as against net profit of Rs 4.39 crore in Q3 December 2012. Total income declined 7% to Rs 327.52 crore in Q3 December 2013 over Q3 December 2012.

The Kerala-based Dhanlaxmi Bank provides a suite of banking products and services to its customers across retail banking, microfinance and agricultural lending and small and medium enterprises group.

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