The rights issue of Lakshmi Vilas Bank, which opened on November 16, 2009 and closed on December 15, 2009 was subscribed to the extent of 1.17 times. The bank issued 4,91,64,453 equity shares of Rs. 10 each for cash at a premium of Rs. 44 per equity share to its existing shareholders, aggregating to Rs. 265.49 crore.
The issue was in the ratio of 1 equity share for every 1 equity share held as on the record date i.e. 25th September, 2009. The issue price was 5.4 times of the face value of the equity shares of the Bank.
Lakshmi Vilas Bank received 33,599 valid applications and the basis of allotment was finalized on December 23, 2009 in consultation with the National Stock Exchange (the designated exchange).
The objects of the Issue were to augment the Bank’s capital base by increasing the Tier-I capital and maintain stipulated CRAR, including meeting the expenses of the Issue and contingencies.
About Lakshmi Vilas Bank
The Lakshmi Vilas Bank Limited was founded eight decades ago in 1926 by seven people of Karur under the leadership of Shri V. S. N. Ramalinga Chettiar, mainly to cater to the financial needs of varied customer segments. The Bank was incorporated on November 03, 1926 under the Indian Companies Act, 1913 and obtained the certificate to commence business on November 10, 1926. The Bank obtained its license from RBI on June 19, 1958, and on August 11, 1958, it became a Scheduled Commercial Bank.
As on September 30, 2009, the bank’s total business was Rs. 13,924.00 crore and it earned a net profit of Rs. 44.66 crore. The net NPA of the bank was at 1.52% as on September 30, 2009. Its net owned funds on that date were Rs. 498.40 crore and after this Rights issue, they have gone up upto Rs.762.00 crore.
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