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The Thrissur-based gold lender has set the price of the rights issue at ₹21 per share. It will open on January 8, 2025 and close on January 28, 2025.
This rights issue aims to strengthen the bank’s capital base and is part of a broader strategy to enhance financial stability and support growth initiatives, the company said in an exchange filing.
The private sector bank reported a net profit of ₹25.8 crore for the second quarter, contrasting sharply with a net loss of ₹8 crore in the preceding quarter. On a year-on-year basis, this represents an 11.4% increase from ₹23.16 crore reported in the same quarter last year.
The bank’s revenue from the retail banking segment reached ₹219.6 crore in the September 2024 quarter, up from ₹186.76 crore in the previous quarter and reflecting a 26.6% year-on-year surge from ₹173.45 crore in the same period last year.
Shares of Dhanlaxmi Bank settled nearly half a percent lower at Rs 40.35 apiece on the National Stock Exchange (NSE) on Thursday, December 19. So far this year, the stock has gained more than 30%.
What is a rights issue?
A rights issue is an invitation from a company to its existing shareholders to purchase additional shares in the company, according to Investopedia. In these rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the market price up to a stated future date, the website added. Cash-strapped companies can turn to rights issues to raise money when they need it, it further added.
First Published: Dec 19, 2024 10:37 PM IST
