Shares of Mumbai-based private lender DCB Bank Ltd., gained over 3% on Monday after it announced the issue of equity shares to one of its promoters on a preferential basis.
The preferential issue of shares will result in infusion of ₹83 crore in the lender from its promoter Aga Khan Fund for Economic Development S.A. (AKFED). The promoter entity will be issued 60.58 lakh equity shares of the bank at an issue price of ₹137 per share, which is a 14% premium to last Friday's closing price for DCB Bank.
DCB Bank will conduct a Postal Ballot to seek the approval of its shareholders for the preferential issue.
Post the fund infusion, the promoter shareholding in the lender will rise to 15.66% from 14% earlier.
The bank last week had stated that the fund infusion by the promoter will further strengthen its capital position and support growth plans.
DCB Bank also announced that the board has approved the resignation of its head of operations, technology and human resource and CIO R Venkattesh from the bank. DCB Bank stated in a filing that Venkattesh has resigned to pursue other interests and his last working day with the bank would be February 7, 2024.
The bank’s capital-to-risk (weighted) assets ratio (CRAR) was at 16.55% as of September 30, 2023, excluding the corresponding half-year net profit.
The Tier I capital stood at 14.28%, while the Tier II capital was 2.27%.
Earlier in July, the RBI had given approval to
Tata Asset Management Pvt. Ltd to acquire aggregate holding of up to 7.5% of DCB Bank through the schemes of Tata Mutual Fund. The Fund holds 5.50% stake as of September 30.
Shares of DCB Bank are trading 3% higher at ₹124.80.
