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Tatas picking up stake in Development Credit Bank
The Tatas are picking up a stake in the Mumbai-based Development Credit Bank (DCB), which could just fall short of the 5-per cent mark. The investment is being routed through the newly formed Tata Capital Ltd, a company created to give an added focus to the group’s presence in the financial services business.
The Tatas are picking up a stake in the Mumbai-based Development Credit Bank (DCB), which could just fall short of the 5-per cent mark. The investment is being routed through the newly formed Tata Capital Ltd, a company created to give an added focus to the group's presence in the financial services business.
This follows the announcement by the bank that it is convening a meeting to seek shareholders approval for making a preferential issue of shares to Tata Capital and its associates besides four other institutional investors.
Issue of Shares
The bank is proposing to issue shares at a price of Rs 105 each and mobilise Rs 310 crore. The fresh issue of shares will constitute up to 16.6 per cent of the bank's post-issue share capital, it said in a notice to the Bombay Stock Exchange.
"It is a financial investment and the clause of 'up to 4.6 per cent' is more an enabling provision in case the RBI does not approve of one or more of the investors. Post issue, one or more of the investors will have less than 4.6 per cent stake," said Mr Adil Kasad, Chief Financial Officer, Development Credit Bank.
This follows the announcement by the bank that it is convening a meeting to seek shareholders approval for making a preferential issue of shares to Tata Capital and its associates besides four other institutional investors. 
