Lakshmi Vilas Bank plans to raise Rs 1,500 crore to fund biz growth

Lakshmi Vilas Bank (LVB) plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent, the private lender said in a notice.

LVB said it would seek approval for the proposals from its shareholders in the upcoming e-annual general meeting on September 25.

The bank has been exploring various options for raising funds for augmenting the tier-I capital to support business growth as directed by the RBI, it said in the notice.

The Chennai-based lender said the board of directors in its meeting on August 26 accorded its approval for raising of funds, including by way of issue of equity shares, GDRs, ADRs foreign currency convertible bonds (FCCGs), preference shares convertible into equity shares among others in one or more tranches by way of one or more public and/or private offerings.

“Whilst no specific instrument has been identified at this stage, in the event, the issue will be structured in such a manner that the proceeds of the same would not exceed Rs 1,000 crore,” it said.