South Indian Bank's rights issue in 1:3 to augment capital

Private lender South Indian Bank today said its board has approved issuing one equity share for every three equity shares held by shareholders on rights basis.
The board of directors of the bank met today to decide on the issue of equity shares on the rights basis, the bank said in a regulatory filing.
"The Board of Directors of the Bank...Has decided to issue equity shares of face value of Re 1 each of the bank, to the existing shareholders on a rights basis (rights issue) in the ratio of 1:3 (one Equity Shares for every three Equity Shares held) on a record date to be fixed at a later date, at a price of Rs. 14 per Equity Share," the bank said.

On December 14, the bank had informed about the rights issue with the aim to augment the paid-up capital.
Shares of the bank today closed 1.46 per cent up at Rs 20.85 on BSE.