Money & Banking

IDBI Bank to raise up to ₹2,000 crore via QIP

Our Bureau Mumbai | Updated on December 16, 2020

Floor price, based on pricing formula as per SEBI ICDR Regulations, is ₹40.63 per equity share

The qualified institutional placement (QIP) Committee of IDBI Bank’s Board of Directors has authorised the opening of the bank’s QIP issue on December 15, 2020.

The bank, in its regulatory filing late Tuesday, said it is planning to raise an amount aggregating up to ₹2,000 crore (base size of ₹1,000 crore and ₹1,000 crore under green shoe option) via the QIP issue.

Also read: IDBI Bank redeems $350-million worth senior notes

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 ₹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 ₹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. The government owns 47.11 per cent stake in the bank.

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 16, 2020

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