LVB board approves up to 15 cr equity share issue, Rs 250 cr fund raise via bonds

Lakshmi Vilas Bank (LVB) today said its board has approved an issue of up to 15 crore equity shares or convertible securities to raise funds, estimated to be around Rs 1,695 crore.

The board also approved a proposal to raise up to Rs 250 crore through issue of bonds, debentures or securities on private placement basis.

The board today resolved to issue up to 15 crore equity shares or any other securities convertible into equities shares through one or more modes including qualified institutions placement, ADRs, GDRs or foreign currency convertible bonds (FCCBs), the private lender said in a regulatory filing.

On the basis of today's closing price of Rs 113.05 on BSE, the bank could raise up to Rs 1,695.75 crore by equity share issue.

"The board of directors passed enabling resolution for raising of funds through issue of bonds/debentures/securities of the bank on private placement basis, for an aggregate amount of up to Rs 2,500 million," it said in a regulatory filing.

The board has appointed IIFL Holdings as the lead manager for the equity fund raise. JP Morgan India will be the strategic advisor for this equity fund raise plan.

The bank will seek shareholders' approval to the proposals, the filing said.