Lakshmi Vilas Bank to raise Rs 505 crore through rights issue

The money would be used to support the future growth

Lakshmi Vilas Bank Ltd is planning to raise around Rs 505 crore through rights issue, in order to support its future business growth.

A meeting of the Board of Directors of the Bank is expected to be held on July 16, 2014, to consider the terms for issue of equity shares on rights basis and decide various related aspects including the size of the proposed rights issue of equity shares, issue price per rights equity share of face value of Rs 10 each and the number of rights equity shares which an eligible equity shareholder as on the record date will be entitled to, according to an announcement with Bombay Stock Exchange.

The Bank is expected to raise around Rs 505 crore and this would be used towards supporting the expected growth in future, said Rakesh Sharma, managing director and CEO of Lakshmi Vilas Bank.

Record date for determining the eligible equity shareholders who would be entitled to the rights equity shares will also be decided on the board meeting on July 16, says the Bank announcement.