IDFC First Bank board approves Rs 3,200 crore fundraise via preferential issue

IDFC First Bank on Thursday announced that its board has approved a plan to raise Rs 3,200 crore through a preferential issue of shares to support business growth.

In its meeting on May 30, 2024, the bank's board approved the issuance, offering, and allotment of 39.68 crore shares with a face value of Rs 10 each, fully paid-up, at a price of Rs 80.63 per equity share, totalling Rs 3,200 crore. This plan is subject to shareholder approval, the bank stated in a regulatory filing.

The board also approved initiating a postal ballot process to seek shareholder approval for the issuance and allotment of equity shares via this preferential issue.

Following the allotment, the bank’s issued and paid-up equity share capital will rise from 707.73 crore shares to 747.42 crore shares, each with a face value of Rs 10 fully paid-up.

Post-issue, the stakes of several key investors will increase: LIC's stake will grow from 0.20 per cent to 2.68 per cent, HDFC Life Insurance's from 0.25 per cent to 1.31 per cent, and Aditya Birla Sun Life Insurance Company's from 0.25 per cent to 1.06 per cent.

(With PTI inputs)