Lakshmi Vilas Bank lost 0.27% to Rs 75 at 9:38 IST on BSE after the bank said that its board of directors have approved to issue and allot equity shares of the bank for an amount aggregating up to Rs 650 crore on rights basis.
The announcement was made after market hours on Friday, 3 January 2014.
Meanwhile, the S&P BSE Sensex was down 103.95 points or 0.5% at 20,747.38.
On BSE, so far 8,776 shares were traded in the counter as against average daily volume of 50,866 shares in the past one quarter.
The stock was volatile. The stock lost as much as 1.32% at the day's low of Rs 74.20 so far during the day. The stock rose as much as 1.72% at the day's high of Rs 76.50 so far during the day. The stock had hit a 52-week high of Rs 128.35 on 7 January 2013. The stock had hit a 52-week low of Rs 59 on 20 August 2013.
The stock had outperformed the market over the past one month till 3 January 2014, surging 6.67% compared with the Sensex's 0.02% fall. The scrip had also outperformed the market in past one quarter, jumping 21.68% as against Sensex's 4.77% rise.
The small-cap bank has equity capital of Rs 97.55 crore. Face value per share is Rs 10.
Lakshmi Vilas Bank's board of directors at a meeting held on Friday, 3 January 2014, approved to issue and allot equity shares of the bank for an amount aggregating up to Rs 650 crore to the equity shareholders of the bank on a rights basis at such price as may be determined by the Board or a Committee thereof.
If one assumes that the bank issues 8.64 crore fresh equity shares, it will result in a massive equity dilution of 88.6% based on the closing price of Rs 75.20 on Friday, 3 January 2014.
Lakshmi Vilas Bank's net profit fell 67.4% to Rs 5.85 crore on 12.5% growth in total income to Rs 536.77 crore in Q2 September 2013 over Q2 September 2012.
Lakshmi Vilas Bank provides a variety of services, including corporate banking, commercial & personal banking, retail banking, NRI services, insurance and development banking through a network of branches. The bank has a strong and wide base in Tamil Nadu.
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