DCB raises Rs 81 cr via QIP, promoter stake reduces to 23%

Development Credit Bank (DCB) today said it has raised Rs 81 crore by private placement of shares with qualified buyers.

After the QIP, the promoter group's -- Aga Khan Fund of Economic Development (AKFED) -- holding in DCB has come down to 23.11 per cent from 26.22 per cent earlier, Development Credit Bank said in a filing to the Bombay Stock Exchange (BSE).

Over a period of time, the bank intends to have a select few long-term investors who along with AKFED would support the DCB's growth strategy and mission, the filing added.

"We are now concentrating on growing secured assets in retail, micro SME, SME and mid corporate business segments. The capital raised will strengthen our balance sheet and facility growth," DCB Chief Executive Officer and Managing Director Murali M Natrajan said.

This issue further enhances the capital adequacy position of the bank which was already at 15.9 per cent as on September 30, 2009.

The qualified institutional placement had opened on November 11 and closed on November 18, the filing added.

Shares of DCB closed at Rs 36.70 on BSE, down by 2 per cent from its previous close.