IDBI Bank Plans to Raise Rs 11,000 Cr Equity Capital

IDBI Bank will raise up to Rs 11,000 crore equity capital through various modes, including a qualified institutional placement (QIP), in about a year to strengthen its capital base, the bank said on Wednesday. The lender will seek approval from shareholders for the proposal in the upcoming annual general meeting (AGM) on August 17, 2020, the bank said in a regulatory filing. IDBI Bank is required to maintain its Tier I capital in accordance with the relevant regulatory guidelines issued from time to time. In view of the ongoing implementation of Basel III norms and consequential capital charge, there is a need to increase the capital to further strengthen the Capital Adequacy Ratio, it said.

IDBI Bank said it will seek the consent of shareholders in the AGM to offer, issue and allot such number of equity shares of the face value of Rs 10 each and aggregating up to Rs 11,000 crore, in one or more tranches.

The issuance of shares will be including but not limited to one or more of the existing shareholders/members, employees of the bank, Qualified Institutional Buyers (QIBs) by way of a public issue, rights issue or private placement, it added. The AGM will be held through audio/video means in view of the pandemic, the bank said.

‘The issue proceeds will enable the Bank to strengthen its Capital Adequacy Requirements as specified by RBI from time to time,’ it said. The bank said the board will decide the issue price and the date. The allotment of the equity shares will be completed within 12 months from the date of passing of the resolution in respect of a QIP, it added.

Read EquityPandit’s Nifty Bank Outlook for the Week 

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More