IDFC First Bank to Raise Rs 3,200 Crore via Preferential Issue

IDFC First Bank's board approved raising Rs 3,200 crore through a preferential issue of 39.68 crore shares at Rs 80.63 per share to fund business growth. This plan is subject to shareholder approval via postal ballot. Post-allotment, there will be an increase in equity share capital and significant rises in stakes for LIC, HDFC Life Insurance, and Aditya Birla Sun Life Insurance.

IDFC First Bank on Thursday said its board approved a plan to raise Rs 3,200 crore via preferential issue of shares to fund business growth.

The board of the bank at its meeting on May 30, 2024 considered and approved to issue, offer and allot 39.68 crore shares of face value of Rs 10 each fully paid-up, on a preferential basis, to the allottees at a price of Rs 80.63 per equity share, amounting to Rs 3,200 crore, IDFC First Bank said in a regulatory filing.

This is subject to approval of the shareholders of the bank, it said. Further, the board approved a process of carrying out postal ballot to seek approval of the shareholders for issuance and allotment of equity shares by way of preferential issue to the proposed allottees.

Post allotment, the issued and paid-up equity share capital of the bank will increase from 7,07,72,76,843 equity shares of Rs 10 each fully paid-up to 7,47,41,51,443 fully paid-up equity shares of Rs 10 each.

After the preferential issue, LIC stake would increase from 0.20 per cent to 2.68 per cent and HDFC Life Insurance from 0.25 per cent to 1.31 per cent and Aditya Birla Sun Life Insurance Company from 0.25 per cent to 1.06 per cent.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)