Dena Bank gains on plan to raise Rs 400 crore via QIP

NEW DELHI: Shares of Dena Bank ended higher on Wednesday after reports that the lender could become the first bank under the Reserve Bank of India's (RBI) prompt corrective action to tap the equity market.

Following the development, the stock gained 0.16 per cent to close at Rs 30.65 on BSE. It opened at Rs 30.70 and touched an intraday high and low of Rs 31.70 and Rs 30.50 respectively.

The bank announced a qualified institutional placement ( QIP) to raise up to Rs 400 crore from institutional investors.

In a notice to the stock exchanges, the bank said it will sell shares to institutional investors at a floor price of Rs 30.73 per share or at a 5 per cent discount to that price, ET reported.

Promoters held 70.04 per cent stake in the bank as of June 2017.

For the quarter ended June 30, 2017, Dena Bank reported total revenue at 2,382.99 crore and net loss stood at 132.65 crore.

The scrip touched its fresh 52-week high of Rs 50 on May 9, 2017 and its 52-week low of Rs 30.25 yesterday, on October 10, 2017.