South Indian Bank zooms over 7% on board nod to ₹1,151 crore rights issue
Upstox
2 min read • Updated: February 22, 2024, 1:34 PM
Summary
South Indian Bank's rights issue will open on March 6 and close on March 20. The record date for the bank’s rights issue has been set as Tuesday, February 27
South Indian Bank’s Board of Directors at the meeting held on February 21, 2024, approved the rights issue to raise ₹1,151.01 crore, the lender said in a filing to the stock exchanges.
The bank informed the bourses that it will issue a total of 5,231,85,254 rights equity shares, each on a fully paid up basis. The right issue price has been fixed at ₹22 per share that will be fully paid up on application. The rights issue price reflects a 32% discount to the closing price on Wednesday, February 21.
As per the stock exchange filing, South Indian Bank's rights issue will open on March 6 and close on March 20. Further, the record date for the bank’s rights issue has been set as Tuesday, February 27.
The Kerala-based private sector lender has said that for the rights issue it will be allotting one equity share for every four such shares held by its shareholders as on the record date. The issue will lead to an equity dilution of 25%, while South Indian Bank’s net worth will improve by 16%.
The private lender’s consolidated net profit jumped to a sharp 196.45% in the third quarter of the current financial year to ₹305.38 crore compared to ₹103.01 crore in the same period last year. Its total income rose 41.4% to ₹2,636.23 crore in Q3FY24 on a year-on-year (YoY) basis.
Shares of South Indian Bank Ltd were trading 6.76% higher at ₹34.8 apiece on NSE at 1:30 PM.