ChrysCapital II LLC, a leading venture capital firm, will acquire a 13 per cent stake in Development Credit Bank (DCB) for an investment of Rs 35.8 crore, putting the bank's valuation at over Rs 270 crore. |
As per the proposed deal, ChrysCapital will acquire 6,509,091 shares of Rs 10 each in the bank at Rs 55. |
With the additional equity inflow, the bank is expected to get an impetus in its personalised banking services as well as expand its retail banking network. |
ChrysCapital's proposal for picking up equity base in the bank is currently awaiting the government approval. |
The fund plans to pick up equity in DCB either directly or indirectly through its affiliates and subsidiaries. |
This will be second bank in which ChrysCapital will invest. |
It already has an investment in Rana Kapoor's Yes Bank "" its holds a 7.5 per cent stake in the bank. |
Yes Bank has also given its no-objection certificate to ChrysCapital's investment in DCB. |
On September 30, 2003, DCB' total equity capital was Rs 28.15 crore with Aga Khan Fund for Economic Development holding 49 per cent of it. |
As of March 2003, the bank also had a deposit base of Rs 3,657 crore and the advances were over Rs 2,488 crore. |
The equity investment by ChrisCapital is also expected to give the bank additional foreign exchange. |
Besides, the $126.68 million venture capital fund is also expected to get the bank a network of relationships as well customers. |
DCB, which currently has a network of 62 branches across the country also has the permission to start an additional nine more branches. |
Since its inception, the bank had developed a strategy aimed at products for specific market segments. |