LVB plans to increase authorised capital to Rs1000 cr

 Proposal to raise up to Rs1500 cr through equity, debt

CHENNAI: The board meeting of the capital-starved Lakshmi Vilas Bank (LVB) on Wednesday has made key proposals aimed at strengthening the bank’s fund and capital base.

The proposals include increasing the authorized share capital of the bank from Rs650 crore to Rs1000 crore, raising equity base by up to Rs1000 crore and raising debt up to Rs500 crore.

The board has voted for amending the Memorandum of Association of the Bank.  A bank statement said that the board has proposed to “raise funds by way of issuance of equity shares or such other eligible security, including but not limited to Global Depository Receipts (GDR), American Depository Receipts (ADR), foreign currency convertible bonds, fully convertible debentures (FCDs) / partly convertible debentures, securities or financial instruments convertible into equity shares and securities linked to equity shares, or any combination thereof, in one or more tranches, issuance including but not limited to further public offer (FPO), rights issue and/or qualified institutions placement to eligible investors for an aggregate amount not exceeding Rs 1000 crore.”

The board also proposed “raising of funds by way of issuance of bonds, non-convertible debentures (NCDs) and/or such other debt securities, in one or more tranches, at such price or prices as may be permissible under applicable law by way of a private placement, for an aggregate amount not exceeding Rs500 crore.”

 

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