South Indian Bank shares surge 10% as board approves terms of rights issue

Shares of South Indian Bank Ltd surged over 10% today after board of the lender approved terms of the rights issue announced in December last year. South Indian Bank stock rose 10.45% to Rs 35.95 against the previous close of Rs 32.54 on BSE. The banking stock is trading near its record high of Rs 40.16 reached on February 2, 2024.

Earlier, the stock opened higher at Rs 33.31 on BSE. Total 45.18 lakh shares of the firm changed hands amounting to a turnover of Rs 15.55 crore on BSE. Market cap of the bank stood at Rs 7450 crore on BSE.

South Indian Bank shares have a beta of 0.9, indicating very low volatility in a year.

The stock has gained 114.41% in a year and risen 334.84% in a span of two years.

The bank plans to raise Rs 1,151 crore via rights issue. As per the terms, the lender will issue 52.31 crore rights shares on a fully paid-up basis. The price of the rigths issue has been fixed at Rs 22 per share, a discount of nearly 35% to the bank's closing price on Wednesday.

The rights issue will be open from March 6 to March 20, 2024. Record date for rights issue has been fixed at February 27, 2024.

Shareholders of South Indian Bank will be eligible to receive one rights share for every four that they hold.

In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 47, signaling it's trading neither in the overbought nor in the oversold zone. South Indian Bank shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

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