Dhanlaxmi Bank planning to raise Rs 127 crore via rights issue this month

The bank's capital adequacy ratio fell below 13% in the March quarter and capital raised via the rights issue is expected to boost it by 50 bps

Thrissur-based Dhanlaxmi Bank is planning to raise Rs 127 crore equity capital through a 2:1 rights issue by the end of the month to boost its capital adequacy ratio which fell to 12.98% as on end March. The capital raised via the rights issue is expected to boost the capital adequacy ratio by 50 bps.

Sources said the rights issue could be at a discount over the current share price. The shares of the bank are trading at Rs 12.73. The bank will seek Sebi approval for the issue in the next 10 days. Centrum Capital is the merchant banker