DCB Bank - Promoter Announces Capital Infusion Amid MD, CEO Succession: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.DCB Bank Ltd. has informed exchanges that AKFED, the promoter of the bank, has expressed its interest to invest up to $10 million by subscribing to additional equity shares. The purpose of the infusion is to further strengthen the bank’s capital position and support its growth plans. We calculate that the proposed investment would translate to additional tier-I of less than 30 basis points. Importantly, the proposed investment would result in ~2% rise in promoter stake, catapulting it to beyond 15%, which could necessitate specific approval from the Reserve Bank of India, in our view. While the quantum for capital raise is rather modest, promoter intent to increase its stake carries strong positive signalling impact. DCB Bank would see a change of guard in April 2024 wherein the incumbent Managing Director and Chief Executive Officer, having served the bank for 15 years (maximum permissible tenure), would step down. We believe the promoter’s announcement to further infuse capital clearly shows continued commitment amidst management succession. We reiterate 'Buy' with unchanged target price of Rs 140..Click on the attachment to read the full report:.India Strategy For December, Top Idea Picks For Large, Mid, SmallCap Stocks: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

DCB Bank - Promoter Announces Capital Infusion Amid MD, CEO Succession: ICICI Securities

Promoter intends $10 million cap infusion; stake to rise more than 15%

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DCB Bank - Promoter Announces Capital Infusion Amid MD, CEO Succession: ICICI Securities

Promoter intends $10 million cap infusion; stake to rise more than 15%

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