Lakshmi Vilas plans to raise at least Rs 500 crore through rights issue

Proposed right issue is to increase the capital adequacy ratio as lender pursue talks with Clix Capital for a proposed merger

Lakshmi Vilas Bank (LVB) plans to raise at least Rs 500 crore through a rights issue, expecting its institutional investors will participate to protect their money.

Nearly 60 per cent shareholders last week voted against the appointment of MD & CEO and six directors, including promoter K R Pradeep, prompting India’s central bank to appoint a committee to manage the lender

Shakti Sinha, a director on the board of LVB, said the Bank is exploring various options to raise capital. Merchant bankers will advise it raising capital. "We want to work with the shareholders. Viability and market sentiments are important," said Sinha,