DCB Bank plans to raise up to Rs 1,000 cr via equity, debt
BusinessToday.In June 28, 2020
DCB Bank is planning to raise up to Rs 1,000 crore through equity and debt instruments. The bank will seek shareholders' approval in its ensuing annual general meeting (AGM) next month, DCB Bank said in its annual report 2019-20. The AGM is scheduled on July 11 via video conferencing (VC) and other audio-visual means, it also said.
The bank plans to raise up to Rs 500 crore by issue of equity shares to qualified institutional buyers through qualified institutional placement, and an equal amount is slated to be raised by issuing bonds, debentures or securities on a private placement basis, DCB Bank said.
On fundraising via equity share issuance, it said the board of directors will seek consent from shareholders "to create, offer, issue and allot in one or more tranches by way of a qualified institutions placement of equity shares to qualified institutional buyers for an aggregate amount not exceeding Rs 500 crore," DCB Bank said.
Besides, the bank said it will seek shareholders' approval, as a special resolution, at the AGM for raising of funds in Indian or foreign currency by issue of debt securities in domestic and or overseas market, on a private placement basis of an amount not exceeding Rs 500 crore. The fundraising, it said, would be for a period of one year in one or more tranches.
Meanwhile, DCB Bank in May reported a 4 per cent year-on-year growth in its profit after tax (PAT) at Rs 338 crore for the full financial year ended March 31, 2020 (FY20), compared to Rs 325 crore in FY19. The profit was impacted by Rs 63 crore COVID-19 regulatory package provision, the lender said in a regulatory filing.
(With PTI inputs)