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

New Delhi: 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.

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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 percent to 2.68 percent and HDFC Life Insurance from 0.25 percent to 1.31 percent and Aditya Birla Sun Life Insurance Company from 0.25 percent to 1.06 percent.

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