Mumbai: Dhanlaxmi Bank Ltd said on Wednesday it plans to raise upto Rs290 crore by way of preferential allotment of shares to a clutch of private equity and institutional investors.
The bank will use the funds to support its growing business needs and expansion plans, and strengthen capital adequacy ratio, it said in a statement.
Dhanlaxmi plans to issue and allot up to 20.75 million shares at Rs140 each to the investors who include WCP Mauritius Holdings, Customers Bancorp Inc, MKCP Mauritius Master Holdings and Multiples Private Equity Fund.
The issue is at a 16% premium to the bank’s current market price.
The preferential issue will increase the overall capital adequacy ratio of the bank to over 15% and Tier I capital adequacy ratio to over 12%, it added.
The shares will remain locked in for a period of one year from the date of allotment, it said.