Private sector Dhanlaxmi Bank today said it has halted the Rs 290.53 crore fund

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raising plan by way of preferential allotment as one of its investors has backed out.

The proposed investors, Customers Bancorp Inc informed that it will not be able to participate in the preferential allotment and subscribe to the equity share due to certain regulatory reasons applicable in the jurisdiction of its incorporation, Dhanlaxmi Bank said in a filing on the Bombay Stock Exchange.

Further issue of equity shares by way of preferential allotment, the bank shall obtain shareholders' approval afresh, it said.

Shares of the bank declined by 5.01 per cent to Rs 113.75 on the Bombay Stock Exchange.

As part of its future growth strategy, the bank had decided to raise up to Rs 290.53 crore by way of preferential allotment of equity shares to a group of private equity and institutional investors.

The bank had proposed to issue and allot an aggregate of up to 2,07,52,000 equity shares of face value of Rs 10 each, at a premium of Rs 130 per equity share aggregating to an issue price of Rs 140 per equity share.

Dhanlaxmi Bank planed to allot up to 51,88,000 equity shares each to WCP Mauritius Holdings (Wolfensohn Capital Partners), Customers Bancorp, Inc., MKCP Mauritius Master Holdings II or any subsidiaries or affiliates (Mount Kellet Capital Partners) among others.