Development Credit Bank Raises Rs 250 Crore Via QIP | SupportBiz

Finance Forum

Development Credit Bank Raises Rs 250 Crore Via QIP

 
The Board of Directors of DCB Bank has approved the issue and allotment of 30,432,136 equity shares

Mumbai: DCB Bank has raised approximately Rs. 250 crore of Tier I Capital through a recently concluded Qualified Institutions Placement (QIP).

The Board of Directors of DCB Bank has approved the issue and allotment of 30,432,136 equity shares of face value Rs. 10 each to eligible qualified institutional buyers (QIBs) at the issue price of Rs. 82.15 per equity share, aggregating to approximately Rs. 250 crore.

In a notice to BSE and NSE, the DCB Bank said consequent to the issue and allotment of the equity shares to the QIBs, its paid-up equity share capital stands increased to Rs. 281,20,63,580 divided into 28,12,06,358 equity shares of face value of Rs. 10 each from the pre-QIP paid-up equity share capital Rs. 250,77,42,220 divided into 25,07,74,222 equity shares of face value of Rs. 10 each.

As of June 30, 2014, DCB Bank’s Capital Adequacy Ratio (CAR) was 13.63% (of which Tier I Capital was 12.77% and Tier II at 0.86% as per Basel III norms). This does not consider the impact of the QIP.

As a result of the QIP the shareholding of DCB Bank’s promoter will be reduced to approximately 16.43% from 18.45% as of June 30.

Speaking on the QIP. Murali M. Natrajan, Managing Director & CEO of DCB Bank said, “The capital raised will certainly help DCB Bank execute plans for growth in the near future. We are mindful of the responsibility to ensure secure and stable growth of the Bank. We sincerely thank our investors for their support”.