The rights issue, which was slated to close on April 12, devolved due to undersubscription. Sources said that the board meeting is scheduled for this week and will consider the option of enhancing capital and bringing in more funds from existing shareholders. The board will also discuss other issues arising as a result of the rights issue not being subscribed to. In situations wherein a rights issue devolves, the bank supposedly dilutes its stake in promoter s holding to raise capital.
Nobody has a huge majority stake.
The public hold about 30 per cent. After the Ketan Parekh scam, the market price went below Rs 12. Market conditions were such that it was beyond control. He added that there are limitations in approaching the capital market again but the bank will do so again depending on market sentiment.