DCB Bank raises Rs 250 crore via QIP to fund growth plans

DCB Bank, formerly known as Development Credit Bank, has raised about Rs 250 crore through a qualified institutional placement to fund its growth plans.
"The capital raised will certainly help DCB Bank execute plans for growth in the near future. We are mindful of the responsibility to ensure secure and stable growth of the Bank," DCB Bank Managing Director and Chief Executive Officer Murali M Natrajan said in a statement issued here today.
As a result of the QIP, the shareholding of DCB Bank's promoter would be reduced to approximately 16.43 per cent from 18.45 per cent as of June 30, 2014.

The board of DCB Bank has approved the issue and allotment of 30,432,136 equity shares of face value Rs 10 each to eligible qualified institutional buyers (QIBs) at the issue price of Rs 82.15 per equity share, aggregating to approximately Rs 250 crore.
"Consequent to the issue and allotment of the equity shares to the QIBs, its paid-up equity share capital stands increased to Rs 281,20,63,580 divided into 28,12,06,358 equity shares of face value of Rs 10 each from the pre-QIP paid-up equity share capital Rs 250,77,42,220 divided into 25,07,74,222 equity shares of face value of Rs 10 each," the DCB Bank said in a notice to the Bombay Stock Exchange (BSE) and the and National Stock Exchange (NSE).

As of June 30, 2014, DCB Bank's capital adequacy ratio (CAR) was 13.63 per cent (of which Tier I capital was 12.77 per cent and Tier II at 0.86 percent as per Basel III norms).
However, this does not consider the impact of the recently concluded QIP.