UCO Bank gains on fund raising proposal

UCO Bank rose 0.93% to Rs 38 at 9:56 IST on BSE after the bank said its board is considering a proposal for issue of 7.17 crore equity shares on preferential basis to Life Insurance Corporation of India.

The announcement was made after market hours yesterday, 4 October 2016.

Meanwhile, the S&P BSE Sensex was up 8.46 points or 0.03% at 28,343.01.

On BSE, so far 94,000 shares were traded in the counter as against average daily volume of 2.61 lakh shares in the past two weeks. The stock hit a high of Rs 38.60 and a low of Rs 38 so far during the day. The stock had hit a 52-week high of Rs 55.30 on 29 October 2015. The stock had hit a 52-week low of Rs 27.80 on 15 February 2016. The stock had underperformed the market over the past one month till 4 October 2016, sliding 5.99% compared with 0.69% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 15.58% as against Sensex's 3.87% rise.

The mid-cap bank has equity capital of Rs 1301.06 crore. Face value per share is Rs 10.

The proposal for fund raising is placed before the board for approval by circulation. The issue price for preferential allotment will be determined later.

UCO Bank reported net loss of Rs 440.56 crore in Q1 June 2016 compared with net profit of Rs 256.70 crore in Q1 June 2015. Total income declined 8.5% to Rs 4727.93 crore in Q1 June 2016 over Q1 June 2015.

The Government of India held 77.54% stake in UCO Bank (as per the shareholding pattern as on 30 June 2016).

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