23-Feb-2024
2 mins read
Shares of the private sector financial institution, South Indian Bank, saw a notable increase of 5.37 per cent on the National Stock Exchange this Thursday, following the bank’s board decision to green-light a fundraising initiative of Rs 1,151.01 crore via a rights issuance.
The bank has announced its plan to offer 523.1 million rights shares at a price of Rs 22 each on a completely paid-up basis. A rights issue is a method by which a corporation proposes extra shares to its current shareholders at a reduced rate, aiming to gather capital without resorting to external funding. This option is exclusively available to the current shareholders of the firm.
The rights issue for the Thrissur-headquartered South Indian Bank is scheduled to commence on March 6, 2024, and conclude on March 20, 2024, with February 27, 2024, set as the record date for the Issue.
As per the offer’s conditions, bank shareholders will be entitled to receive one new equity share for every four existing fully paid-up equity shares they possess.
Before the rights issue, the bank’s total equity shares stood at 2,092,741,018, which is anticipated to increase to 2,615,926,272 equity shares, provided the rights issue is fully subscribed.
For the third quarter of the fiscal year 2024, the bank reported a net profit of Rs 305.36 crore, which is a substantial 197 per cent increase from Rs 102.75 crore in the comparable quarter of the previous year. The bank also saw a reduction in its gross non-performing assets (NPA), with a 74 basis point decrease from 5.48 per cent to 4.74 per cent year-over-year (YoY). Similarly, its net NPA saw a decrease of 65 basis points, moving from 2.26 per cent to 1.61 per cent YoY.
South Indian Bank Limited Product Portfolio
The South Indian Bank Limited, established during the Swadeshi movement, is a trailblazer in the banking sector of South India, offering an extensive array of services. Its offerings span from Personal Banking, which includes services like account openings, term deposits, various loans (personal, vehicle, home, and gold), mutual fund investments, insurance, and money transfers. The bank also provides Priority Banking, featuring exclusive perks such as complimentary airport lounge access, discounts on locker rentals and loans, as well as reward points. For non-resident Indians, the NRI Banking segment offers specialized services, including account opening, deposits, loans, and electronic services like online account management and compliance updates. Additionally, the bank caters to businesses with services ranging from account opening, both domestic and international financing and money transfers, to advanced solutions like SIB API banking, ensuring a comprehensive banking experience for both individual and corporate clients.
Financial Performance of South Indian Bank Limited (In Rs Crore)
Between the financial year ending March 31, 2023, and March 31, 2022, The South Indian Bank Limited experienced a revenue growth of 5.57% and a significant surge in profit after tax (PAT) by 1629.83%.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 107,697.16 | 100,051.87 | 94,149.17 |
| Revenue | 8,044.55 | 7,620.44 | 1,185.48 |
| Profit After Tax | 775.31 | 44.82 | 61.91 |
Important Details of South Indian Bank Limited Rights Issue 2024
| Issue Open | March 6, 2024 – March 20, 2024 |
| Security Name | The South Indian Bank Limited |
| Issue Size (Shares) | 523,185,254 |
| Issue Size (Amount) | Rs 1,151.00 Crores |
| Issue Price | Rs 22 per share |
| Face Value | Yet to be announced |
| Listing At | BSE, NSE |
| Terms of Payment | Yet to be announced |
| Entitlement | 1 Rights Equity Share(s) for every 4 fully paid-up Equity Shares held on Record Date |
Tentative Timetable of South Indian Bank Limited Rights Issue 2024
| Last Date to buy shares | 26-Feb-24 |
| Record Date | 27-Feb-24 |
| Credit of Rights Entitlements | Yet to be announced |
| Bid/Offer Opens On | 6-Mar-24 |
| Renunciation of Rights Entitlements | Yet to be announced |
| Bid/Offer Closes On | 20-Mar-24 |
| Deemed Date of Allotment | Yet to be announced |
| Credit Date | Yet to be announced |
| Listing Date | Yet to be announced |
The Objectives of South Indian Bank Limited Rights Issue 2024
The Objectives of South Indian Bank Limited Rights Issue 2024 are yet to be announced.
How to Apply for South Indian Bank Limited Rights Issue 2024
Wait for the public Issue to open for subscription, then click here to apply for the South Indian Bank Limited Rights Issue 2024 with Bigul.
How to Check Allotment Status of South Indian Bank Limited Rights Issue 2024
The registrar for South Indian Bank Limited Rights Issue 2024 is yet to be announced.
FAQs
- What is a rights issue?
A rights issue is a way for companies to raise capital by offering existing shareholders the opportunity to purchase additional shares directly from the company at a discounted price for a limited time.
- When will the South Indian Bank Limited Rights Issue 2024 open and close?
The Rights Issue is set to open on March 6, 2024, and will close on March 20, 2024.
- What is the issue price for the South Indian Bank Limited Rights Issue 2024?
The issue price has been set at Rs 22 per share.
- How many rights shares can I buy in the South Indian Bank Limited Rights Issue 2024?
Shareholders are entitled to 1 rights equity share for every 4 fully paid-up equity shares held as on the record date, which is February 27, 2024.
- How can I apply for the South Indian Bank Limited Rights Issue 2024?
You can apply for the rights issue through the link provided by Bigul once the Issue is open for subscription.
- How do I check the allotment status for the South Indian Bank Limited Rights Issue 2024?
The allotment status can be checked through the registrar of the Issue, which will be announced closer to the issue date.
- What are the financial highlights for South Indian Bank leading up to the Rights Issue?
For the financial year ending March 31, 2023, South Indian Bank reported a revenue increase of 5.57% and a significant surge in profit after tax (PAT) by 1629.83% compared to the previous year.
- What will the funds raised from the Rights Issue be used for?
The specific objectives for the funds raised through the Rights Issue 2024 will be announced by the bank.
- Where will the rights shares of South Indian Bank Limited be listed?
The rights shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
- What is the last Date to buy shares to be eligible for the Rights Issue?
The last Date to buy shares to be eligible for the rights issue is February 26, 2024, ensuring you are a shareholder on the record date of February 27, 2024.