The Tata group will pick up to 4.6 per cent stake in Development Credit Bank (DCB) through its newly-formed subsidiary Tata Capital.
The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank.
The other investors who will pick up up to 4.6 per cent stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.
DCB Investments is a special purpose vehicle floated by Schroders, a UK-based asset management company, to invest in the private sector bank. The preferential allotment is subject to the approval of the bank’s shareholders and the Reserve Bank of India (RBI).
If the RBI approval is not received for any of the proposed investor(s), the board of the private sector bank will have the power to identify and negotiate with one or more investors or with other interested investors for selling the stake and will secure the RBI’s special approval for the same, said the bank.
Read more in The Business Standard article.
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