INSUBCONTINENT EXCLUSIVE:
Kolkata: Private sector Lakshmi Vilas Bank said it will issue up to 15 crore equity shares or use instruments convertible into equities such
as qualified institutions placement, American depository receipts, global depository receipts or foreign currency convertible bonds as it
looks to raise about Rs 1500 crore.
The capital will be raised at a premium over Rs 10 face value per equity
The bank has already started talks with prospective investors.
"We need to strengthen our balance sheet keeping the Basel III requirement in
mind," bank chief executive Parthasarathi Mukherjee told ET.
The fresh capital would help the bank replenish its depleted capital adequacy
following the Rs 622-crore fourth quarter net loss
Capital adequacy ratio fell to 9.81% as on March, from 10.38% a year before
"We need to fund our future growth as well," Mukherjee said.
The bank's stock price fell 1% Tuesday to Rs 112.50 on BSE.
The Chennai-based
lender hired IIFL Holdings Ltd as lead manager and JP Morgan India Private Ltd as strategic advisor towards this end, it said in a
regulatory filing to stock exchanges.
It has also decided to raise about 250 crore in bonds in private placement deals.
The bank's board
cleared the capital raising plan Tuesday.
Its business mix stood at Rs 60,314 crore at the end of March with the lending book being at Rs
27,005 crore, which grew 12% year-on-year.
