Private sector Dhanlaxmi Bank today said it proposes to raise up to Rs 290.53 crore by way of preferential allotment of equity shares to a group of private equity and institutional investors.
As part of its future growth strategy, the bank intends to use the capital to support its growing business needs and expansion plans while further strengthening its capital adequacy ratio, Dhanlaxmi Bank said in a statement.
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 per equity share aggregating to an issue price of Rs 140 per equity share, it said.
Dhanlaxmi Bank plans to allot up to 51,88,000 equity shares each to WCP Mauritius Holdings (Wolfensohn Capital Partners), Customers Bancorp, Inc., MKCP Mauritius Master Holdings II or any subsidiaries or affiliates (Mount Kellet Capital Partners) among others, it said.
Dhanlaxmi Bank Managing Director Amitabh Chaturvedi said the response from long-term investors endorses the faith reposed by all stakeholders in the bank's strategy, robust business model and its commitment to deliver superior shareholder value.
Pursuant to the preferential issue, WCP Mauritius Holdings, Customers Bancorp, Inc., MKCP Mauritius Master Holdings II or any of its subsidiaries or affiliates could hold up to 4.90% each of the issued and paid up equity share capital of the bank.
The preferential issue proposes to increase the overall capital adequacy ratio of the bank to over 15% and Tier I capital adequacy ratio to over 12% as per Basel II (based on assets as on March 31, 2011), it said.
In addition, it said, the preferential issue proposes to increase the equity share capital of up to Rs 105.89 crore, and the total shareholders' funds up to Rs 1,135.17 crore, leading to a dilution of up to 19.6% on the expanded capital base.
