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Dhanlaxmi Bank makes another effort to raise funds

Dhanlaxmi Bank is making another attempt to raise Rs 200 crore through preferential allotment. An earlier effort to do so had failed. The bank’s board is expected to give approval for this proposal. The Reserve Bank of India had given the bank permission to raise Rs 300 crore and the bank had raised around Rs 100 crore through various tranches. The move by the bank follows its failed fund-raising attempt a month ago, after a group of investors from Mumbai snubbed the lender at the last hour. While the initial plan was to raise around Rs 233 crore, the bank could raise only Rs 30 crore from a couple of investors in the process. While Kapil Wadhawan, chairman and MD of Mumbai-based Dewan Housing Finance Corp Ltd, picked up around 3.34%, NRI businessman Ravi Pillai raised his stake to 4.9%. All other investors from Mumbai decided against investing in the bank. The fund-raising was meant to build a buffer with a higher capital adequacy ratio.

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