Private-sector lender, Dhanalakshmi Bank, on Tuesday said it has raised Rs. 380.73 crore by selling shares to investors through the qualified institutional placement (QIP) route, to fuel its business growth.

The bank has sold 21 million shares at Rs. 181.30 per equity share, including a premium of Rs. 171.30, aggregating to Rs. 380.73 crore. The institutional placement ended today.

“We have plans to increase our advances from the present Rs. 5,000 crore to Rs. 9,000 crore in FY 11,” Dhanalakshmi Bank’s Managing Director & CEO, Amitabh Chaturvedi, told reporters here.

“The enhanced capital base suitably positions the bank for Phase II of business expansion. The fresh inflow will be used to augment our capital adequacy ratio and for further expansion of our business,” Mr. Chaturvedi said.

The placement increases the overall capital adequacy ratio of the bank to over 20 per cent from 12.5 per cent and Tier 1 capital adequacy ratio to over 16 per cent, he said.

The QIP increases the equity ratio to Rs. 85.12 crore and the total shareholders fund to Rs. 820.81 crore, leading to a dilution of 24.7 per cent on the expanded capital base.

The bank appointed IDFC Capital and JM Financial as its investment bankers for the QIP.

The Thrissur-based lender is also looking for partners to enter the mutual fund business where it will hold less than a 20 per cent stake while the balance will be with partners, he said.

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