Shares of DCB Bank went up close to 5% on Thursday to hit an intraday high of ₹129.80.

What Happened: The surge today comes as the company informed the exchanges that the Reserve Bank of India has granted its approval to HDFC Asset Management Company Limited to acquire aggregate holding of up to 9.5% of the bank.

The central bank has advised HDFC AMC to acquire the major shareholding in DCB Bank within a period of one year from the date of approval. If it fails to acquire the shares within the stipulated period, the approval granted by the RBI shall stand cancelled.

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The announcement has helped the bank continue its five-straight session-gaining streak. The Tata Small Cap Fund-backed has had a flat year till now. On a year-to-date basis, the stock is up around 0.5%. Tata Small Cap Fund owns a 4.94% stake in the company.

HDFC AMC also got approval to acquire a 9.5% stake in Karur Vysya Bank.

Price Action: DCB Bank’s share price was up 3.67% to trade at ₹128.50 in the early hours of trading on Thursday.

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