DCB raises Rs.310 crores through preferential issue

Development Credit Bank Ltd (DCB) has announced that the Board of Directors of the Bank at its meeting held on July 10, 2007, in supersession of the May 03 & 04, 2007 resolution (to raise upto Rs 275 crores by way of private placement and / or preferential issue and / or Rights Issue and / or ADR / GDR and / or any other financial instrument(s)), the Board approved raising an amount upto Rs 310 crores by way of preferential issue to the following investors at a price of Rs 105 per equity share of Rs 10/- each, aggregating upto 16.60% of the post issue share capital of the Bank:

a. Tata Capital Ltd alongwith its associate Company/ies
% of Post Issue Shareholding: Upto 4.60

b. Al Bateen Investment Co. L.L.C., U.A.E.
% of Post Issue Shareholding: Upto 4.60

c. GRA Finance Corporation Ltd, Mauritius:
% of Post Issue Shareholding: Upto 4.60

d. DCB Investments Ltd, Mauritius:
% of Post Issue Shareholding: Upto 4.60

e. India Capital Opportunities 1 Ltd, Mauritius:
% of Post Issue Shareholding: Upto 4.60

Total: Upto 16.60 (i.e. upto Rs 310 crores)

This shall be subject to Shareholders, RBI and other regulatory approvals, if any.

If the RBI approval is not received wholly or partly for any of the proposed investor(s), the Board of Directors shall have the power to identify and negotiate with one or more of the aforementioned investors or with other interested investors and shall procure specific approval of RBI.

The stock closed the day at Rs.109.95, up by Rs.0.45 or 0.41%. The stock hit an intraday high of Rs.113.45 and low of Rs.106. The total traded quantity was 1345922 compared to 2 week average of 345622.

Source : Equity Bulls

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