Today, the board of Lakshmi Vilas Bank (LVB) has approved the proposal of raising funds up to Rs 500 crore through issuance of shares on the rights basis to existing shareholders.
The board “considered and approved, inter-alia, subject to the necessary approvals, the raising of funds by issuance and allotment of equity shares or such other eligible securities of the Bank, for an aggregate amount of up to Rs.500 crores (Rupees Five Hundred crores), by way of a rights issue, on such terms (to be decided by the Board or a duly constituted committee of the Board at a later date), in accordance with applicable law, including Companies Act, 2013 and the rules made thereunder and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended,” said the private lender in a communication to exchanges.
Last week, The Chennai-based bank received a non-binding offer from Clix group for a merger. On 25 September it was jolted out when the bank’s shareholders voted out seven directors on its board including MD & CEO, S Sundar and promoters K R Pradeep and N Saiprasad.
As per the voting out of seven directors, the Reserve Bank of India (RBI) has appointed a three-member committee for running the bank under Meeta Makhan as chairperson and Shakti Sinha and Satish Kumar Kalra as other two-members.
Shares of Lakshmi Vilas Bank were trading 0.3% down at Rs 18.25 per share on BSE.