Dena Bank to raise Rs 65 crore by selling stake to LIC

Public sector lender Dena Bank today said it will sell over two crore shares to LIC on a preferential basis to raise a sum of Rs 65 crore.
The bank will hold an extraordinary general meeting on March 23 to create, offer, issue and allot these equity shares, it said in a BSE filing.
"To raise capital by creating, offering, issuing and allotting up to 2,16,76,267 equity shares of face value of Rs 10 each to Life Insurance Corporation, on preferential basis, for cash at issue price of Rs 29.92 per share...Aggregating up to Rs 65 crore,", it said.
LIC holds 11.63 per cent stake in Dena Bank and after the acquisition of additional over two crore shares, the shareholding will be raised to 14.50 per cent.

However, the share sale will bring down the government's equity in the bank to 62.89 per cent from 65 per cent.
The bank also said the government's shareholding will not fall below 51 per cent and there would not be any change in the control.
Shares of Dena Bank were at trading 1.73 per cent higher at Rs 26.40 apiece on BSE in pre-close session.