Dhanlaxmi Bank Board Approves Fundraise Of Up To Rs 300 Crore Via Rights Issue

Dhanlaxmi Bank Ltd.'s board of directors approved the fundraise of up to Rs 300 crore through rights issue on Tuesday. The bank will raise funds by way of the issue of equity shares on a rights basis to its existing eligible shareholders as of the record date, according to an exchange filing.

The record date will be fixed in due course, the filing said.

Such resolution is in supersession of the enabling resolutions with respect to the proposed rights issue passed by the board of directors of the bank in its meetings dated March 22, 2024, Sept. 29, 2023 and March 17, 2022.

The detailed terms, including but not limited to issue price, rights entitlement ratio, record date, timing and terms of payment for the purposes of giving effect to the rights issue, will be determined and intimated in due course.

Dhanlaxmi Bank reported a loss of Rs 8 crore in the first quarter of the fiscal 2024-25, according to provisional figures released by the bank. The bank had earned a net profit of Rs 28 crore in the April-June quarter of fiscal 2023-24.

The bank's total income declined to Rs 338 crore in the first quarter as against Rs 341 crore in the same period a year ago, the bank said in a regulatory filing.

Shares of Dhanlaxmi Bank closed over 6.75% lower to Rs 34.24 apiece, compared to a 1.25% decline at the benchmark NSE Nifty 50 on Tuesday.

It has risen 15.42% in the last 12 months and 11.84% on a year-to-date basis. The total traded volume so far in the day stood at 0.78 times its 30-day average. The relative strength index was at 44.28.