Dena Bank, Andhra Bank sell additional stake to LIC

Public sector lender Dena Bank has raised Rs 65 crore by issuing over 2 crore shares to LIC on preferential basis.

Andhra Bank also said it has sold over 4.23% stake to LIC on a preferential allotment, without disclosing the amount.

Post the acquisition of additional shares in Dena Bank, LIC's stake in the lender has gone up to 14.5% from 11.63% earlier, Dena Bank said in a regulatory filing.

"Upon receipt of funds from LIC, the Issue Committee of the Board of Bank at its meeting held on March 30, has allotted 2,16,76,267 equity shares of Rs 10 each at a premium of Rs 19.92 per share amounting to Rs 64.86 crore to LIC of India, on a preferential basis", the bank said.

Post the allotment, government's shareholding has decreased to 62.89% from existing 65%, it said.

The bank's scrip was trading at Rs 29.05, up 2.47%, on BSE.

Meanwhile, Andhra Bank said it has sold over 4.23% stake equivalent to 28,853,210 shares to LIC on a preferential allotment. The price per unit at which Andhra Bank sold shares to LIC was not provided.

After the additional stake buy in Andhra Bank, LIC holds more than 14.39% in the lender, from earlier over 10.15%.

Shares of the Andhra Bank were trading at Rs 51.70, up 3.50%, on BSE.