Shares of DCB bank rose nearly 8 per cent in the early trading on Thursday; Know why
DCB Bank Share Price: Shares of DCB bank rose nearly 8 per cent in the early trading on Thursday after Tata Asset Management Company (AMC) received a regulatory nod to increase its stake in the lender. The stock price of the bank jumped as much as 7.98 per cent to an intraday high of Rs 131.15 apiece on the BSE.
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“We would like to inform you that the Bank has received an intimation from RBI on July 5, 2023, that it has granted its approval to Tata Asset Management Private Limited (TAMPL) to acquire aggregate holding of up to 7.5 per cent of the paid-up equity capital of the Bank through the schemes of Tata Mutual Fund,” DCB Bank said in an exchange filing.
The approval is valid for a period of one year from the date of the RBI letter.
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RBI also advised Tata AMC to ensure that its aggregate shareholding in the DCB Bank shall not exceed 7.5 per cent of the paid-up capital of the bank at all times.
At 9.31 am, the stock was trading 6.2 per cent higher at Rs 129 on BSE. Meanwhile, the stock has also risen 63 per cent in the last year.
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“The stock has witnessed a decent pullback from the significant 50EMA and 200 period MA of around 116 levels and has improved the bias to anticipate a further rise in the coming days. The RSI has also indicated a trend reversal showing strength to signal a buy and currently is well placed with much upside potential visible to carry on the momentum still further ahead,” domestic brokerage firm Prabhudas Lilladher said.
Prabhudas suggested buying and accumulating the stock for an upside target of 142 while keeping the stop loss at 116.
