KOCHI: Dhanlaxmi Bank, the Thrissur-based private sector lender, has announced the details of its upcoming rights issue. The bank’s Board has approved raising up to Rs297.54 crore by issuing shares to its existing eligible shareholders.
The rights issue will open on January 8, 2025, and close on January 28, 2025. The issue price has been set at Rs21 per share, significantly lower than the current market price of Rs41.99 (Friday closing price) apiece on the National Stock Exchange (NSE) as of December 20.
Eligible shareholders will be entitled to purchase shares in the ratio of 14:25 as of the record date, which has been set as December 27.
This fundraising initiative aims to strengthen the bank’s capital base and support its growth initiatives. The bank also emphasised that this move aligns with its broader strategy to enhance financial stability, according to its exchange filing.
Financial performance
Dhanlaxmi Bank reported a net profit of Rs25.8 crore for the second quarter of FY25, marking a sharp turnaround from the Rs8 crore net loss reported in the preceding quarter. On a year-on-year basis, the profit rose by 11.4 per cent compared with Rs23.16 crore in the same period last year.
The bank’s revenue from the retail banking segment surged to Rs219.6 crore in Q2FY25, up from Rs186.76 crore in the previous quarter and representing a 26.6% increase from Rs173.45 crore in the corresponding period a year ago.
Shares of Dhanlaxmi Bank have gained over 30 per cent so far this year. However, on December 20, the stock settled nearly 4 per cent higher at Rs41.995 on the NSE.
