Bank of Rajasthan surges on stake sale plan

DALAL STREET SPIKES

The Bank of Rajasthan counter surged to close at its day's high of Rs 68.40. It hit its upper circuit of 20 per cent on reports that it would sell a 14.75 per cent stake to foreign investors or strategic partners. More than 108.35 lakh shares were traded on the BSE.

A block deal of 6 lakh shares was recorded on the Bombay Stock Exchange at a price of around Rs 64.

The sellers were Pacific Corporation Services but the buyers were not known.

The counter has seen huge buying activity in the last few days, brokers said. Reports said Bank of Rajasthan plans to divest 14.75 per cent stake through preferential allotment of equity shares to FIIs or strategic partners.

Sources said that the move follows the need to adhere to the Reserve Bank of India draft guideline to reduce promoters holding in the bank to 10 per cent.

The Reserve Bank of India guidelines released in July stated that no single entity should hold more than 10 per cent stake in a private sector bank.

Post allotment, promoter's holding in the bank will reduce to 38 per cent from 46 per cent, he added.