Shares of DCB Bank rallied 6% on 11 December after the company’s Board of Directors approved the issue of equity shares to one of its promoters on a preferential basis.

The preferential issue will result in the raising of capital worth Rs 83 crore from its promoter, Aga Khan Fund for Economic Development S.A. The promoter will be issued 60.58 lakh equity shares of the lender at an issue price of Rs 137 per share, a 17% premium from the closing price of 8 December.

The bank will also conduct a Postal Ballot to seek approval from its shareholders for raising funds through preferential issues.

Earlier, the bank had stated that the fund infusion through its promoter would strengthen its capital position and support growth plans.

The company’s Board of Directors have also approved the resignation of its head of operations, technology and human resource and CIO R Venkattesh from the bank. The bank stated that Venkatesh has resigned from his posts to pursue other interests, and his last working day with the company will be 7 February 2024.

At 3:30 pm, the shares of DCB Bank closed 6.23% higher at Rs 128.70 on NSE.