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Dena Bank makes preferential issue to LIC & GIC

The government's shareholding in the Bank, which is presently at 66.57%, will be at 58.01% with the proposed issue of equity shares

March 25, 2014 9:47 IST | India Infoline News Service
Dena Bank has made a preferential issue of 5.32 crore equity shares to Life Insurance Corporation of India for Rs 282 crore; and 1.58 crore shares to the General Insurance Corporation for Rs 84 crore.
The Bank approached LIC and GIC for capital infusion to meet the credit requirement of the economy as well as to maintain regulatory capital adequacy ratios and both the institutions have given their 'ln-principle' approval to infuse capital funds of Rs. 335 crore and Rs. 100 crore respectively, in the Bank by way subscription of equity shares on preferential basis, Dena Bank said in a filing on the Bombay Stock Exchange.
The Bank has subsequently fixed the lssue Price of Rs.52.91 per equity share including a premium of Rs.42.91 per equity share, it added.
GOI has approved raising of capital through issuance of equity shares to LIC and GIC on preferential allotment basis subject to the condition that GOI's holding in the Bank shall not fall below 58%, it further said.
An issue price of Rs.52.91, the number of equity shares to be issued on preferential basis to LIC & GIC works out to 5.32 crore and 1.58 crore amounting upto Rs. 282 crore and Rs. 84 crore respectively.
The Government of lndia's shareholding in the Bank, which is presently at 66.57%, will be at 58.01% with the proposed issue of equity shares.

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