Money & Banking

IDBI Bank to raise up to Rs 2,000 cr via QIP

Our Bureau. Mumbai | Updated on December 15, 2020

IDBI Bank, in a regulatory filing late on Tuesday, said it is planning to raise an amount aggregating up to Rs. 2,000 crore (base size of Rs 1,000 crore and Rs 1,000 crore under green shoe option) via the QIP issue.

The Qualified Institutions Placement (QIP) Committee of the bank’s board of directors had authorised the opening of the issue on December 15.

In its filing on October 29, 2020, IDBI Bank said: “the Board...has passed a resolution for approving the raising of funds for an amount not exceeding Rs 6,000 crore through issue of equity shares through qualified institutions placement.”

The floor price of the issue, based on the pricing formula as prescribed under SEBI ICDR Regulations, is Rs 40.63 per equity share, the bank said in a regulatory filing.

The bank said it may offer a discount of not more than 5 per cent on the floor price so calculated for the issue.

Life Insurance Corporation of India (LIC) had acquired majority stake (51 per cent) in IDBI Bank in January 2019, becoming its promoter. The Government owns 47.11 per cent stake.

Meanwhile, a meeting of the Committee is scheduled to be held on December 18, 2020 to, inter alia, consider and approve the issue price, including a discount, if any, thereto as permitted under the SEBI ICDR Regulations, for the equity shares to be allotted to eligible qualified institutional buyers, pursuant to the issue.

 

Published on December 15, 2020

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