Dhanlaxmi Bank shares surge 20% on takeover buzz

Monday, May 11, 2015,20:07 IST By metrovaartha A A A

Mumbai | Shares of Dhanlaxmi Bank surged nearly 20 per cent to hit the highest permissible trading limit for the day amid reports that Kotak Mahindra Bank is looking to acquire the Kerala-based lender.
Following the buzz, the stock zoomed 19.87 per cent to Rs 38 — its upper circuit limit on the BSE.
On the NSE, it soared 19.9 per cent to touch its upper circuit limit of Rs 37.95.
In terms of volume, 7.22 lakh shares of the company changed hands at the BSE and over 23 lakh shares were traded at the NSE during the day.
Shares of Kotak Mahindra, too, rose by 0.87 per cent to settle at Rs 1,338.95 on the BSE.
According to media reports, Kotak Mahindra Bank is looking to acquire the lender via share swap.
Meanwhile, some other media reports quoted Kotak Mahindra Bank official denying the rumour.
In the broader market, the BSE benchmark Sensex ended at 27,507.30, up 401.91 points.