Lakshmi Vilas Bank raises Rs 168 crore via QIP

Private sector Lakshmi Vilas Bank has raised Rs 167.8 crore through issuance of 1.19 crore equity shares on qualified institution placement (QIP) basis.
"...Approved the issue price of Rs 140 per equity share (including premium of Rs 130 per equity share), which is at a discount of Rs 1.15 per equity share, to the floor price of Rs 141.15 per equity share, for the issuance and allocation of 1,19,85,138 equity shares to be allotted to eligible qualified institutional buyers pursuant to the QIP aggregating up to Rs 1,678 million," the company said in a BSE filing.
According to statement, the Committee of Directors for Capital Raising of the Bank at its meeting held on December 31, 2016, has passed the the resolutions in respect of the QIP.

Earlier last week, the bank had launched QIP to raise over
Rs 599.88 crore by issuing 4.25 crore shares in domestic or international markets.
The Committee of Directors for Capital Raising of the bank, at a meeting last week had approved the floor price for the QIP issue at Rs 141.15 per equity share.

In May this year, the bank had informed that it will raise funds in one or more public or private offerings in domestic and/or international markets, either in the form of Qualified Institutional Placement (QIP) or Qualified Institutional Buyers (QIBs).
Besides, the bank had said that the funds could also be raised by issuing equity shares through depository receipts, including global depository receipts (GDR) or American Depository Receipts (ADR) or even through foreign currency convertible bonds (FCCBs).

Most of the listed companies use the QIP route to raise funds by either issuing shares, fully or partly convertible debentures or any securities other than warrants which are convertible to equity shares to a QIB.