Dena Bank rallies nearly 4% on Rs 700 cr capital infusion

NEW DELHI: Dena Bank rallied as much as 3.89 per cent in morning trade on Friday, after the government infused Rs 700 crore in Dena Bank through the preferential share allotment route.

At 09:38 a.m.; Dena Bank pared some of the morning gains and was trading 2.8 per cent higher at Rs 63.35. It has hit a low of Rs 62.6 and a high of Rs 64 in trade today.

Dena Bank has allotted 11.85 crore shares of Rs 10 each to the government on a preferential allotment basis at a price of Rs 59.03 a share, the bank said in a statement.

Accordingly, it said, the government has infused a capital of Rs 699.99 crore towards issuance and allotment of equity shares on a preferential basis.

Post capital infusion, the paid-up share capital of the bank has increased from Rs.350.05 crore to Rs.468.64 crore and the government’s holding in the bank has increased from 55.24 per cent to 66.57 per cent, PTI reported.