OBC drops on preferential share allotment to government at discount

Oriental Bank of Commerce lost 2.32% to Rs 210.30 at 14:35 IST on BSE after the bank said it has allotted 80.87 lakh equity shares at Rs 185.47 per share to the government on preferential basis.

The announcement was made during trading hours today, 13 December 2013.

Meanwhile, the S&P BSE Sensex was down 169.26 points or 0.81% at 20,756.35.

On BSE, so far 1.85 lakh shares were traded in the counter as against average daily volume of 2.73 lakh shares in the past one quarter.

The stock hit a high of Rs 214.45 and a low of Rs 209 so far during the day.

The stock had outperformed the market over the past one month till 12 December 2013, advancing 24.96% compared with the Sensex's 3.17% rise. The scrip had also outperformed the market in past one quarter, jumping 32.7% as against Sensex's 5.78% rise.

Oriental Bank of Commerce (OBC) said it has allotted 80.87 lakh equity shares of Rs 10 each for cash at issue price (including premium) of Rs 185.47 per share aggregating to about Rs 150 crore to the Government of India (GoI) on preferential allotment basis. The issue price of Rs 185.47 was at a discount of 13.85% to the stock's closing price of Rs 215.30 on Thursday, 12 December 2013.

Consequent to the allotment, the GoI's holding in OBC has increased to 59.13% from 58%.

OBC's net profit declined 16.8% to Rs 251.41 crore on 3.5% growth in total income to Rs 4987.71 crore in Q2 September 2013 over Q2 September 2012.

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