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Bank of Maharashtra turns volatile after preferential allotment

Capital Market 

Bank of Maharashtra rose 0.72% to Rs 48.75 at 11:28 IST on BSE after the bank said it has allotted shares to the Government of India and Life Insurance Corporation of India on preferential allotment basis.

The announcement was made after market hours on Friday, 11 July 2014.

Meanwhile, the S&P BSE Sensex was down 32.03 points or 0.13% at 24,992.32.

On BSE, so far 52,000 shares were traded in the counter as against average daily volume of 2.35 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.54% at the day's high of Rs 49.15 so far during the day. The stock lost as much as 2.27% at the day's low of Rs 47.30 so far during the day. The stock hit a 52-week high of Rs 55.15 on 9 June 2014. The stock hit a 52-week low of Rs 29.10 on 28 February 2014.

The stock had underperformed the market over the past one month till 11 July 2014, sliding 2.62% compared with Sensex's 1.76% fall. The scrip had, however, outperformed the market in past one quarter, jumping 23.94% as against Sensex's 10.59% rise.

The mid-cap state-run bank has equity capital of Rs 839.10 crore. Face value per share is Rs 10.

Bank of Maharashtra said that pursuant to the special resolution passed by the shareholders at the Annual General Meeting held on 26 June 2014, the board of directors of the bank, on 11 July 2014 has allotted 13.33 crore equity shares of Rs 10 each for cash at conversion price of Rs 44.09 per share including premium of Rs 34.09 per share aggregating to Rs 588 crore on conversion of PNCPS of Rs 588 crore held by Government of India (GoI), on preferential basis to GoI. The bank also allotted 9.07 crore equity shares of Rs 10 each for cash at Rs 44.09 per share including premium of Rs 34.09 per share aggregating Rs 400 crore to LIC of India and its schemes on preferential basis.

Bank of Maharashtra's net profit declined 78% to Rs 56.95 crore on 6.6% growth in total income to Rs 3372.48 crore in Q4 March 2014 over Q4 March 2013.

Government of India holds 85.21% stake in Bank of Maharashtra (as per the shareholding pattern as on 30 June 2014).

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First Published: Mon, July 14 2014. 11:27 IST