Dhanlaxmi Bank Board Approves Terms For Rs 297-Crore Rights Issue— Check Record Date And Other Details Here
Eligible shareholders will be entitled to 14 rights shares for every 25 fully paid-up shares held.
The Board of Directors of Dhanlaxmi Bank, in a meeting held on Dec. 19, approved the final terms for its upcoming rights issue, following the initial approval granted on Oct. 22.
The bank will issue 14.16 crore fully paid-up equity shares through the rights issue, aggregating up to Rs 297.54 crore, assuming full subscription. The rights issue price has been set at Rs 21 per share, including a premium of Rs 11 per share.
Eligible equity shareholders will be entitled to 14 shares for every 25 fully paid-up shares held as of the record date, set for Friday, Dec. 27.
A rights issue allows existing shareholders to purchase additional shares directly from the company at a predetermined price, usually at a discount to the market price (Tuesday’s close was Rs 41.84), in proportion to their existing holdings. The record date determines which shareholders are eligible to participate in the rights issue. Investors must purchase shares by Thursday, Dec. 26, on a T+1 delivery basis to ensure eligibility for the rights issue.
The subscription window for the rights issue will open on Wednesday, Jan. 8, 2025, and close on Tuesday, Jan. 28, 2025.
A rights issue is a fundraising strategy that allows companies to raise capital by giving existing shareholders the opportunity to buy more shares at a discount.
Dhanlaxmi Bank Q2 Business Update
Key Highlights (As of September 30, YoY)
Total business grew 6.3% to Rs 25,649 crore.
Total deposits increased 5.89% to Rs 14,631 crore.
Gross advances rose 6.86% to Rs 11,018 crore.
Shares of the commercial bank closed over 0.59% lower at Rs 41.84 apiece, compared to a 0.11% decline at the benchmark NSE Nifty 50 on Tuesday. The stock has risen 42.07% in the last 12 months and 36.51% on a year-to-date basis.
