South Indian Bank shares rise after board approves rights issue

South Indian Bank's Shares Surge 3%

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Key Dates for Rights Issue

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Rights issues involve selling additional shares to existing shareholders.

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Impact on Equity and Net Worth

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Market Response and Current Status

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South Indian Bank shares rise after board approves rights issue

South Indian Bank shares rise after board approves rights issue

South Indian Bank's Shares Surge 3%

Shares of South Indian Bank rose 3% post-approval of its ₹1,151 crore rights issue.

Shares of South Indian Bank rose 3% post-approval of its ₹1,151 crore rights issue.

The bank plans to issue 52.31 crore shares at ₹22 each, a 35% discount to the Wednesday closing price.

The bank plans to issue 52.31 crore shares at ₹22 each, a 35% discount to the Wednesday closing price.

Key Dates for Rights Issue

The rights issue opens on March 6 and closes on March 20, with February 27 as the record date.

The rights issue opens on March 6 and closes on March 20, with February 27 as the record date.

Shareholders get one rights share for every four held.

Rights issues involve selling additional shares to existing shareholders.

Rights issues involve selling additional shares to existing shareholders.

Those without shares as of the record date can't participate. This move aims to raise funds.

Those without shares as of the record date can't participate. This move aims to raise funds.

Understanding Rights Issues

Impact on Equity and Net Worth

The rights issue leads to a 25% equity dilution but boosts net worth by 16%.

The rights issue leads to a 25% equity dilution but boosts net worth by 16%.

Post-issue, the tier-I ratio improves to 16.58% from 13.37%.

Post-issue, the tier-I ratio improves to 16.58% from 13.37%.

Market Response and Current Status

South Indian Bank shares, currently 2.9% higher at ₹33.55, show positive market response post-rights issue announcement.

South Indian Bank shares, currently 2.9% higher at ₹33.55, show positive market response post-rights issue announcement.

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