Lakshmi Vilas Bank to raise funds up to Rs 1,500 crore via equity, debt

Private sector lender Lakshmi Vilas Bank on Wednesday said that it will raise funds up to Rs 1,500 crore through various means. The fundraising is subject to requisite approval.

The bank in an exchange filing said that its board has approved proposal to raise fund not exceeding Rs 1,000 crore by way of issuance of equity shares. The bank will raise another Rs 500 crore through issuance of bonds and non-convertible debentures in one or more tranches.

"The bank's board at its meeting on August 28, 2019 have approved the raising of funds by way of issuance of equity shares, or such other eligible security in one or more tranches, at price permissible under applicable law by way of one or more permitted modes of issuance, to eligible investors for an aggregate amount not exceeding Rs 1,000 crore," Lakshmi Vilas Bank said in a filing to the Bombay Stock Exchange.

The board has also gave nod to raise funds through issuance of bonds, non- convertible debentures or such other debt securities, in one or more tranches, by way of a private placement, for an aggregate amount not exceeding Rs 500 crore, it said in the filing.

Also Read: Vodafone Idea gets shareholders' approval to increase share capital to Rs 50,000 crore

Among other decisions, the board also approved the proposal to the increase in the authorised share capital of the bank from existing Rs 500 crore to Rs 650 crore (divided into 65 crore equity shares of Rs 10 each) by amending the memorandum of association of the bank.

In a separate development, the bank announced that its managing director and chief executive officer Parthasarathi Mukherjee has resigned, owing to personal reasons. The matter was placed before the board in the meeting held today and it has accepted the same, Lakshmi Vilas Bank said.

Also Read: Moody's downgrades long-term rating of YES Bank, maintains negative outlook

"Parthasarathi Mukherjee will be relieved from his services at the closing hours on August 31, 2019," it added.

Ahead of announcement, shares of Lakshmi Vilas Bank closed trade at Rs 40.75 apiece, down 4.90 per cent, on the BSE on Wednesday.

Edited by Chitranjan Kumar