- Nov 3, 2010
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.
The Bank proposed to issue and allot an aggregate of up to 2.07 crore 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.
Dhanlaxmi Bank plans to allot up to 51.88 lakh equity shares each to WCP Mauritius Holdings, Customers Bancorp, Inc, MKCP Mauritius Master Holdings II Ltd or any subsidiaries or affiliates (Mount Kellet Capital Partners) and up to 36.31 lakh to Multiples Private Equity FII I and up to 15.56 crore to Multiples Private Equity Fund.
Speaking on the occasion, Dhanlaxmi Bank MD-cum-CEO 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. The proceeds will be used to support our future expansion plans and will provide us with a firm base for exponential business growth." Pursuant to the preferential issue, WCP Mauritius Holdings, Customers Bancorp, Inc, MKCP Mauritius Master Holdings II Ltd or any its subsidiaries or affiliates could hold up to 4.90 per cent each of the issued and paid up equity share capital of Dhanlaxmi Bank.
In addition, Multiples Private Equity FII I and Multiples Private Equity Fund could hold upto 3.43 per cent and up to 1.47 per cent respectively.
The preferential issue proposes to increase the overall capital adequacy ratio of the bank to over 15 per cent and Tier I capital adequacy ratio to over 12 per cent as per Basel II (based on assets as at March 31, 2011).
In addition, the preferential issue proposes to increase the equity share capital upto Rs 105.89 crore, and the total shareholders' funds up to Rs 1,135.17 crore, leading to a dilution of upto 19.6 per cent on the expanded capital base.
The shares allotted pursuant to the preferential issue will remain locked in for a period of one year from the date of allotment.
Incorporated in 1927 at Thrissur in Kerala, Dhanlaxmi Bank had a total business of Rs 21,595 crore as on March 31, 2011.