DCB Bank approves preferential issuance of equity shares

Post-issue, the holdings of the promoters will come down marginally to 18.48%

Development Credit Bank Ltd. (DCB Bank) has announced that the Board of Directors has approved Preferential Issuance of Equity Shares.

The Board of Directors of the Bank approved Preferential Issuance of Rs. 93 lakh Equity Shares of Rs. 10 each at a premium of Rs. 33.68.
 
The issue will be subscribed by WCP Holdings III, approximately 56 lakh shares and Tano Mauritius India FVCI II subscribing to approximately 37 lakh shares.
 
The issue is subject to regulatory and shareholder approval. Upon completion of the Preferential Issuance, Tier I Capital will increase by approximately Rs. 40.44 Cr.
 
This Capital Raising will help to ensure that the Bank’s subscribed capital is at least 50% of the authorised capital as required by the Banking Regulation Act, 1949.
 
At the completion of the issue, the share holding of AKFED and PJI (the Promoter Group) will stand at 18.48% a reduction from the pre-issue share holding of 19.20%.
 
As on September 30, 2012, the Bank Capital Adequacy under Basel II was 13.97%  (Tier I - 12.71%).

Mr Murali M. Natrajan, Managing Director & CEO, DCB Bank commented, “The Bank will continue to build its portfolio in Retail Mortgages, MSME, SME, Gold Loans, mid Corporate and Agri / Inclusive Banking”.