Dhanlaxmi Bank to raise Rs 290 cr thru preferential issue

Dhanlaxmi Bank on Wednesday announced it is looking to raise up to Rs 290.53 crore through preferential allotment of equity shares to a group of private equity and institutional investors.

The bank will use the capital to support its growing business needs and expansion plans while further strengthening its capital adequacy ratio, said a press release issued by the bank.

Earlier the bank had said that it would raise up to Rs 1,000 crore in the current fiscal in order to support its business growth and expansion plans and out of this it would raise up to Rs 500 crore by May.

The bank proposes to issue and allot an aggregate of up to 2,07,52,000 equity shares of face value of Rs 10 each, at a premium of Rs 130 an equity share aggregating to an issue price of Rs 140 an equity share, the release said.

Dhanlaxmi Bank plans to allot up to 5.1 lakh equity shares each to WCP Mauritius Holdings (Wolfensohn Capital Partners), Customers Bancorp Inc, MKCP Mauritius Master Holdings II Limited or any subsidiaries or affiliates (Mount Kellet Capital Partners) and up to 36,31,600 to Multiples Private Equity FII I and up to 15,56,400 to Multiples Private Equity Fund.

After the issue, the bank's overall capital adequacy ratio is likely to be over 15 per cent and Tier-I CAR over 12 per cent.

In addition, the preferential issue proposes to increase the equity share capital up to Rs 105.89 crore, and the shareholders' funds up to Rs 1,135.17 crore, leading to a dilution of up to 19.6 per cent on the expanded capital base, the release said.

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