Mumbai: Shares of Bank of Maharashtra (BoM) surged by over 12% on the Bombay Stock Exchange (BSE) on Friday, boosted by the government’s decision to infuse Rs352 crore into the company by way of preferential allotment of equity shares.
Cheering the move, shares of BoM advanced by 12.31% to a one-month high of Rs63.85 on the BSE.
Another lender, Dena Bank, which will receive a Rs539 crore infusion from the government by way of preferential allotment of equity, saw its shares rise by 2.42% to an early high of Rs101.50.
Similarly, shares of Vijaya Bank, which will get a Rs368 crore capital infusion from the government, rose by 1.94% to an early peak of Rs86.5.
The government will infuse Rs1,259 crore as equity capital into these three PSU lenders as part of a recapitalization package to shore up their equity capital.
Meanwhile, the 30-share BSE Sensex was trading flat at 18,522.51 at 11:00 am.