Dhanlaxmi Bank share price up 5%; here's what's boosting rally in stock

Dhanlaxmi Bank shares rose 5.4 per cent in Friday's trade, logging an intraday high at Rs 42.54 per share on BSE. The stock was in demand after the company's board sanctioned raising Rs 297.54 crore through rights issue with a total issue of 14,16,86,767 rights shares each.

 

Around 11:07 AM, Dhanlaxmi share price was up 3.69 per cent at Rs 41.82 per share on BSE. In comparison, the BSE Sensex was down 0.02 per cent at 79,205.56. The market capitalisation of the company stood at Rs 1,058.35 crore. The 52-week high of the company stood at Rs 58.70 per share and the 52-week low stood at Rs 28.25 per share.

 

The right issue price set by the board stands at Rs 21 per rights share. The record date for the issue is set as Friday, December 27, 2024.

 

On October 22, the board of the Bank held 2024 approving the offer and issuance of fully paid-up equity shares of the Bank (the "Rights Equity Shares") for an amount not exceeding 300 crore, by way of a rights issue ("Rights Issue"). 

 

In Q2, the bank's standalone net profit increased 11.44 per cent to Rs 25.81 crore in Q2 FY25 as against Rs 23.16 crore recorded in Q2 FY24.

Total income jumped 16.25 per cent year-on-year (Y-o-Y) to Rs 380.64 crore in the quarter ended on 30 September 2024.

 

The bank's operating profit before provisions and contingencies surged 88.23 per cent to Rs 33.13 crore in Q2 FY25 over Q2 FY24.

 

Dhanlaxmi Bank, established in 1927 and headquartered in Thrissur, Kerala, is a private-sector bank in India offering a wide range of financial services, including retail and corporate banking, loans, insurance, and wealth management. With a strong network of branches and ATMs across the country, the bank focuses on providing customer-centric solutions and leveraging technology for innovative digital banking services. 

 

Known for its transparency and personalized approach, Dhanlaxmi Bank continues to strengthen its position in the Indian banking sector by adapting to evolving market trends and delivering exceptional customer experiences.

 

In the past one year, Dhanlaxmi Bank shares have gained 39.4 per cent against Sensex's rise of 12 per cent.