The proposed bonds will be unsecured, subordinated, transferable, redeemable and fully paid-up, the bank said in a regulatory filing. The issue will be undertaken through private placement and will be subject to regulatory approvals, as may be required.
The bank has also announced the closure of its trading window for all designated persons and their immediate relatives from September 10.
The trading window will remain closed until 48 hours after details of the proposed capital raising are made public, in line with the bank’s Code of Conduct for regulating, monitoring and reporting insider trading in its securities.
The proposed capital raising will form part of the agenda for the September 16 board meeting.
Earlier ₹500 crore debt plan
The latest move comes after the bank’s board, on June 24, approved a proposal to seek shareholder approval at its 10th Annual General Meeting (AGM) for raising up to ₹500 crore through rated, listed, unsecured, subordinated and redeemable non-convertible debentures, bonds or other debt securities.
The proposed issue would also be made through private placement and would be subject to regulatory and shareholder approvals.
The board had separately approved plans to raise up to ₹1,250 crore through a Qualified Institutions Placement (QIP) and/or other permissible modes. The fundraise could include equity shares or convertible securities such as warrants, in one or more tranches, subject to regulatory and shareholder approvals.
Shares of Equitas Small Finance Bank closed 0.22% higher at ₹72.70 on September 9. The stock gained ₹0.16 during the session.
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