Dhanlaxmi Bank jumps on board's nod for preferential allotment

Dhanlaxmi Bank spurted 14.57% to Rs 34.20 at 15:15 IST on BSE after the bank said its board 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 announcement was made during trading hours today, 4 March 2014.

Meanwhile, the S&P BSE Sensex was up 261.21 points or 1.25% at 21,207.86.

On BSE, so far 20.70 lakh shares were traded in the counter as against average daily volume of 53,890 shares in the past one quarter.

The stock hit a high of Rs 35.80 and a low of Rs 29.35 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 3 March 2014, sliding 12.08% compared with the Sensex's 3.65% rise. The scrip had also underperformed the market in past one quarter, declining 28.07% as against Sensex's 0.44% rise.

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

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.

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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