Shares of Dena Bank gained almost 4 per cent in the morning trade on BSE as the government on Thursday infused Rs 700 crore in the bank through the preferential share allotment route.
At 10:04 hours, shares of the bank were trading at Rs 63.40 a piece, up 2.92 per cent from previous close on BSE.
The government has bought 11.85 crore shares of Rs.10 each from Dena Bank at a price of Rs.59.03 a share. Accordingly, it infused a capital of Rs.699.99 crore towards issuance and allotment of equity shares on a preferential basis.
The paid-up capital share capital of the bank has increased from Rs.350.05 crore to Rs.468.64 crore after the infusion and the government's holding in the bank has increased from 55.24 per cent to 66.57 per cent.