<article>Dhanlaxmi Bank Ltd has informed the exchanges that it has raised Rs.84 crore ($12.64 million) equity funds from existing investors in exchange of preferential allotment to four investors.</article>

Dhanlaxmi Bank Ltd has informed the exchanges that it has raised Rs.84 crore ($12.64 million) equity funds from existing investors in exchange of preferential allotment to four investors.
“Dhanlaxmi Bank Ltd has today informed BSE that the Bank has approved the allotment of 3,24,05,000 equity shares of Rs.10 each at a price of Rs.25.98 per share (including premium of Rs.15.98) on preferential allotment basis,” the company statement said.
On 9 August, Mint had <a href="http://www.livemint.com/Companies/iWajWzyDfNGe1H0ikEYleM/Dhanlaxmi-Bank-says-it-expects-Rs120-crore-equity-infusion-t.html" target="_blank">reported </a>that Dhanlaxmi Bank is expecting Rs.120 crore in equity infusion from its existing shareholders this week to help bolster its weak capital position.
At the end of March, Dhanlaxmi Bank had a capital adequacy ratio (CAR) of 7.51%, which is below the regulatory requirement of 9.625%. As per regulatory norms, the bank was required to have capital funds worth Rs.645 crore but had capital worth aboutRs.504 crore as on 31 March, it said in disclosures on its website.
The current equity infusion follows the decision by Credit Analysis and Research Ltd (Care) to assign a default rating to Dhanlaxmi Bank’s upper tier II bonds, as the bank’s CAR dropped below the regulatory requirement on 31 March. Due to the deterioration in the bank’s finances, the Reserve Bank of India (RBI) asked it to defer payments on some of its bonds.
The bank had reported a profit of Rs.5.73 crore in the April-June quarter as compared to a loss of Rs.22.71 crore in the same period last year.
At 10.11am, Dhanlaxmi Bank rose 11.6% to Rs.26.55 on the BSE, while India’s benchmark Sensex index fell 0.12% to 28,890.95 points.
This story was first published on <a href="http://www.livemint.com/Industry/IcNBKRZaJwOSaxtlRLwymO/Dhanlaxmi-Bank-raises-Rs84-crore-equity-from-existing-invest.html">Livemint</a>

Cross-border venture capital (VC) firm Transit Capital is in talks to raise its debut fund and is targeting a corpus of $50-60 million.

India: Dhanlaxmi Bank raises $12.6m equity from existing investors

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India: Dhanlaxmi Bank raises $12.6m equity from existing investors

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