Dhanlaxmi Bank, a private lender with headquarters in Thrissur, has announced a rights issue to raise Rs 297.54 crore with the goal of bolstering its capital base and assisting with expansion efforts. The plan, which was accepted by the bank's board on October 22, 2024, gives current qualified shareholders the chance to buy more shares at a price of Rs 21 each.
Opening and Closing Date of the Dhanlaxmi Bank Rights Issue
January 8, 2025 is when the rights issue will open, and January 28, 2025 is when it will close. In an exchange filing, the bank—which is well-known for its emphasis on gold loans—stated that this capital infusion is a component of a larger plan to enhanace financial stability.
The financial performance of Dhanlaxmi Bank
Following a net loss of Rs 8 crore in the first quarter, Dhanlaxmi Bank recently announced a net profit of Rs 25.8 crore for the second quarter. The profit increased 11.4% year over year from Rs 23.16 crore during the same time the previous year.
The retail banking segment's revenue jumped to Rs 219.6 crore in the September 2024 quarter, up 18.6% from Rs 186.76 crore in the previous quarter and 26.6% from Rs 173.45 crore in the same period last year.
The stock has increased by more than 30% this year in spite of the decline.
What is a Rights Issue?
Through a rights issue, businesses can raise fund by giving current shareholders the chance to purchase more shares at a reduced price for a predetermined amount of time. According to Investopedia, businesses in need of funding frequently use it to stabilize their finances or finance expansion.
