Lakshmi Vilas Bank falls 6% after fixing rights issue ratio

Lakshmi Vilas Bank fixed rights issue in the ratio of 1:3 i.e. one rights equity share for every three equity shares held by the eligible shareholders on the record date.

Lakshmi Vilas Bank has dipped 6% to Rs 170 on the BSE in intra-day trade after the private sector lender fixed rights issue in the ratio of 1:3 i.e. one rights equity share for every three equity shares held by the eligible shareholders on the record date.

The bank has fixed December 06, 2017 as the record date for the purpose of rights issue of equity shares. The stock will turn for ex-rights on December 05, 2017 on the BSE and NSE.

“The rights issue of 64.50 million equity shares to be offered at price of Rs 122 per rights equity share, for an amount aggregating up to Rs 786.87 crore,” Lakshmi Vilas Bank said in a statement.

The issue will open on December 12, 2017 and closes on December 18, 2017, it added.

The board of directors of Lakshmi Vilas Bank in its meeting held September 27, 2017 had decided to raise funds by way of issue of equity shares on rights basis to existing shareholders of the Bank for an amount up to Rs 800 crore.

In past two months, the stock had outperformed the market by gaining 21% as compared to 6.5% rise in the S&P BSE Sensex till Friday.