DCB to raise capital by Rs 200 crore; no plans for IPO now
By About 40 per cent of the | 14 Aug 2003
"We are in talks with various investment banks, exploring ways to raise the capital. The plan is to raise Rs 125 crore through the tier-I capital and the rest through tier-II," says DCB managing director and chief executive H V Sheshadri.
About 40 per cent of the capital raised will be utilised to clean up its assets book through a write-off, while 60 per cent will be utilised towards building branches and ATMs. The bank plans to increase its branches from 63 to 76 and ATMs from 48 to 100 by the yearend.
The bank has no immediate plan for an initial public offering. "We have to wait for two-three years before floating an IPO," says John Harris, the financial services head of Aga Khan Fund for Economic Development, which holds a 49-per cent equity stake in the bank.
The Paris-based foundation has investments in several developing and underdeveloped countries in financial and industrial sectors. It also runs many welfare programmes in Africa and South Asia to meet the educational and health requirements of people.
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