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Lakshmi Vilas Bank (LVB) is planning to raise funds for the rights issue.
Earlier, the Bank's Board of Directors gave the approval to raise funds through equity shares on rights basis to existing shareholders of the Bank (Rights Issue) for an amount up to Rs 800 crore.
Today the Capital Raising Committee of the Board of the Bank met and decided that the rights issue to be offered at a price of Rs 122 only per Rights Equity Share (including a premium of Rs 112 only per right equity share) and the full amount is to be paid an application.
The issue of equity shares by way of the rights issue to the eligible shareholders of the Bank, for an amount aggregating up to Rs 786.87 crore.
The issue will open on December 12 and end on December 26.
The Bank is moving away from large corporates and decided to grow its SME and retail portfolios, where the stronger focus will be lent to gold loans, home loans and SME credit, among others.