Private sector lender Development Credit Bank plans to sell 16.6 per cent stake to five investors and raise around Rs 3.10 billion, a senior official said on Tuesday.
The shares will be issued at Rs 105 each, Managing Director and Chief Executive Officer Gautam Vir said.
The investors are Tata Capital Ltd, Al Bateen Investment Co of the United Arab Emirates, GRA Finance Corp, DCB Investments Ltd, Mauritius and India Capital Opportunities 1 Ltd.
The bank had earlier planned to raise Rs 2.75 billion.
“The share price has increased and we see that we can raise more money by diluting the same stake,” he said.
He also said the bank's capital adequacy ratio would go to 18 per cent from the current 10.5 per cent after this fund-raising. “We basically want to grow our balance sheet,” he said.
Source : Economic Times