Dena Bank share price climbed as much as 5 per cent in the early trade on Friday after the public sector lender got board approval for dilution of government holding to up to 52 per cent (Express Photo)
Dena Bank share price climbed as much as 5 per cent in the early trade on Friday after the public sector lender got board approval for dilution of government holding to up to 52 per cent and raise capital up to Rs 2,500 crore from various bonds.
“To raise equity capital of the Bank by diluting GOI holding up to 52 per cent, on obtaining necessary approval government,” the bank said in a BSE filing.
At 9.42 am, the scrip was trading 3.34 per cent up at Rs 44.90. The share price of Dena Bank opened at Rs 44.80 and had touched a high and low of Rs 45.60 and Rs 44.35, respectively, in trade so far. Sensex was down 187.11 points at 25,699.51.
Government shareholding in the bank was 65 per cent at the end of September 30. Last year, the government allowed public sector banks to bring down its stake to 52 per cent so as to meet capital requirement.
The bank said it has got board approval to raise Additional Tier-1 (AT1) capital up to an amount of Rs 1,500 crore in one or more tranche, in one or more instruments.
It further added that the bank has got board approval to raise Tier 2 capital up to an amount of Rs 1,000 crore in one or more tranche, in one or more instruments.
(With inputs from PTI)
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