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Old private sector lender Lakshmi Vilas Bank plans to raise ₹505 crore through a rights issue from its existing shareholders.
Post market hours, the bank informed the BSE that it has filed a draft letter of offer in connection with the proposed rights issue of equity shares of ₹10 each, aggregating to ₹505 crore for cash.
The bank filed a draft letter with the Securities and Exchange Board of India seeking in-principle approval of the issue. Under the rights issue, existing shareholders are entitled to buy additional shares directly from the bank for a fixed time period.
The funds would increase the bank’s capital adequacy ratio, which was at 10.46 per cent as on December 31, 2013, according to Basel III requirements. On Thursday, the shares of LVB ended higher at ₹66.20 apiece, up 1.38 per cent from its previous close on the BSE.
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