Lakshmi Vilas Bank seeks Sebi nod for Rs 505-cr rights issue

Private lender Lakshmi Vilas Bank has sought market regulator's Sebi approval to raise Rs 505 crore through rights issue.

Issue of equity shares on a rights basis to its existing equity shareholders would aggregate up to Rs 505 crore, draft letter filed by Lakshmi Vilas Bank with Securities and Exchange Board of India (Sebi) showed.

Under the rights issue, shares are issued to existing investors of an entity as per their holding at pre-determined price and ratio.

Lakshmi Vilas Bank intends to utilise the proceeds from the issue "to augment its capital base in line with its growth strategy".

Axis Capital would be the lead manager to the issue, while Integrated Enterprises (India) Ltd is the registrar to the issue.

As per the draft letter, the bank which is listed on BSE and National Stock Exchange (NSE) has received "in-principle" approvals from both the bourses for listing the rights issue.

Based in Tamil Nadu, the bank has a network of 362 branches and 8 extension counters, spread over 15 states and the union territory of Puducherry.