Bank of Rajasthan to raise Rs 167cr

Bank of Rajasthan to raise Rs 167cr

BS Reporter / Mumbai December 3, 2007

Bank of Rajasthan will raise Rs 166.75 crore through a preferential issue of shares to New York-based hedge fund management company, Indus Capital Partners and Delhi-based fund Max India.

The bank informed the Bombay Stock Exchange (BSE) that its shareholders have approved the issue one crore equity shares at a price of Rs 166.65 per share to the investors on a preferential basis. 

The bank will issue 65 lakh shares to Indus Capital and 35 lakh shares to Max India.

The promoters of the bank, the Tayals, collectively hold 44% and have been under pressure from the Reserve Bank of India (RBI) to dilute promoter holding. 

RBI guidelines on ownership restricts any entity from owning in excess of 10% in a bank.