Vijaya Bank gains after board approves stake sale to LIC

Vijaya Bank rose 1.52% to Rs 33.50 at 9:32 IST on BSE after the bank said that its board approved raising upto Rs 226 crore by issuing shares to Life Insurance Corporation of India.

The announceemnt was made after market hours yesterday, 3 March 2016.

Meanwhile, the BSE Sensex was down 14.84 points, or 0.06%, to 24,592.15.

On BSE, so far 38,000 shares were traded in the counter, compared with an average volume of 54,492 shares in the past one quarter. The stock hit a high of Rs 34 and a low of Rs 33.35 so far during the day. The stock hit a 52-week high of Rs 48.70 on 15 April 2015. The stock hit a 52-week low of Rs 28.70 on 18 January 2016. The stock had outperformed the market over the past one month till 3 March 2016, rising 10.55% compared with 1.58% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 5.04% as against Sensex's 4.94% fall.

The small-cap bank has an equity capital of Rs 859.12 crore. Face value per share is Rs 10.

Vijaya Bank said that the board of directors of the bank at its meeting held on 3 March 2016 has approved the proposal for preferential issue of equity shares to Life Insurance Corporation of India aggregating upto Rs 226 crore (inclusive of premium amount) subject to Government of India's approval and to convene an extra ordinary general meeting of the shareholders to pass the necessary special resolution in this regard.

Net profit of Vijaya Bank rose 40.67% to Rs 52.61 crore on 2% decline in operating income to Rs 3237.02 crore in Q3 December 2015 over Q3 December 2014.

As per the shareholding pattern, the Government of India held 74.06% stake in the bank as at 31 December 2015. LIC held 49816209 shares, or 5.80% stake in Vijaya Bank as at 31 December 2015

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