Development Credit Bank Ltd has raised Rs 94 crore by issuing and allotting around 1.96 crore equity shares to Qualified Institutional Buyers (QIBs).
The private sector bank issued equity shares of face value of Rs10 each at a price of Rs 47.84 a share to the QIBs.
The aggregate shareholding of QIBs is around 10 per cent of the bank's post-preferential allotment issued share capital. As on March 6, the Aga Khan Fund for Economic Development was the single largest shareholder with 21 per cent stake (23.06 per cent as at December-end 2011).
In its placement document, the bank said that it will utilise the net proceeds from the preferential placement of shares with QIBs to primarily enhance the capital adequacy ratio, increase the capacity to lend and for general corporate purposes, subject to compliance with applicable laws and regulations.
The private sector bank reported a 91 per cent increase in net profit at Rs 15.64 crore in the October-December 2011 period, against Rs 8.17 crore in the corresponding period last year. As on December-end 2011, DCB had deposits and advances to the tune of Rs 6,191 crore and Rs 4,306 crore, respectively.