Development Credit Bank’s board of directors has approved preferential issue of 93 lakh equity shares of Rs 10 each at a premium of Rs 33.68.
According to a bank statement, about 56 lakh shares will be subscribed by WCP Holdings III, and about 37 lakh shares by Tano Mauritius India FVCI II.
Upon completion of the preferential issue, the bank’s Tier I capital will increase by about Rs 40.44 crore, subject to regulatory and shareholders’ approval.
After the completion of the issue, the shareholding of AKFED and PJI (the promoter group) will stand at 18.48 per cent from the pre-issue shareholding of 19.20 per cent.
As on September 30, 2012, the bank’s capital adequacy ratio under Basel II was 13.97 per cent (Tier I at 12.71 per cent).
Murali Natrajan, CEO and Managing Director, said: “The bank will continue to build its portfolio in retail mortgages, MSME, SME, gold loans, mid-corporate and agri/inclusive banking.”