Dhanlaxmi Bank to issue 85 lakh shares to mobilise Rs 51cr

Private sector Dhanlaxmi Bank Ltd will issue 85 lakh equity shares to five individuals, including a Non-Resident Indian BK Raveendran Pillai, to mobilise Rs 5l crore, a top bank official said.

The equity shares will have a face value of Rs 10 each at a premium of Rs 50 per share, he added.

An Extraordinary General Meeting of the Bank held here yesterday authorised the management to mobilise Rs 5l crore by issuing 85 lakh equity shares, bank Managing Director and Chief Executive Officer PG Jayakumar told PTI.

The transfer of shares would be made to Pillai (42 lakh), M Mohanachandran Nair (17 lakh), Sunil Kumar P, Sasi Kumar P and Sree Kumar P (8.5 lakh each) and R S Dinesh Chandran (50,000 shares), he said.

The main objective of the issue was to augment long term capital base of the bank to meet the growing business needs and facilitate the additional capital requirements under Basel II norms, Jayakumar added.

The meeting also approved the proposal of the Abu Dhabi- based EMKE Group's intention to acquire over five lakh equity shares of the Cochin International Airport Ltd, held by the Dhanlaxmi Bank at a price of Rs 160 per share, he added.