Dhanlaxmi Bank To Issue Rights Equity Shares Of Rs 300 Crore

Dhanlaxmi Bank Ltd.'s board of directors approved the terms of a rights issue of equity shares worth Rs 297.54 crores with the assumption of full subscription on Thursday, according to an exchange filing.

The company will issue 14.16 crore equity shares worth Rs 21 per rights equity share, which is fully paid up (including a premium of Rs 11 per rights equity share). The record date of the rights issue is Dec. 27, with the opening date being Jan. 8. The closing date is Jan. 28.

The market renunciation period starts on Jan. 8 and ends on Jan. 23.

The bank had 25.3 crore outstanding equity shares before the rights issue and 39.5 crore equity shares after the issue.

The board held a meeting on Oct. 22 where it approved the offer and issuance of fully paid-up equity shares for an amount not more than Rs 300 crore.

This resolution replaces the previous resolutions regarding the proposed rights issue passed by the bank's board on March 22, 2024, Sept. 29, 2023, and March 17, 2022.

The rights entitlement ratio is 14 rights equity shares for every 25 fully paid-up equity shares of the bank held by the eligible equity shareholders of the same.

Other terms of the rights issue, such as fractional entitlements and zero entitlements, will be included in the letter of offer to be filed by the bank with the Securities and Exchange Board of India, BSE Ltd., and the National Stock Exchange of India Ltd.

The share price of Dhanlaxmi Bank Ltd. closed 0.47% lower at Rs 40.45 apiece on the NSE, compared to a 1.02% decrease in the benchmark Nifty 50.

The stock has risen 31.65% on a year-to-date basis and 29.33% over the past 12 months.

The stock fell as much as 3.21% to trade at Rs 39.24 apiece intraday.