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IDFC First Bank to Raise Rs 3,200 Cr Via Preferential Share

May 31, 2024

By: BlinkX Research Team

The Board of Directors at IDFC First Bank on Thursday, May 30 approved the proposal to raise 3,200 crore rupees via a preferential issue of shares at Rs 80.63 per share. The Bank will raise funds from the Life Insurance Corporation of India, SBI General Insurance, HDFC Life Insurance, and ICICI Lombard, among others. 

Key Takeaways from IDFC First Bank’s Fundraising:

• IDFC First Bank gets a board nod over the proposal to raise 3,200 crore rupees via a preferential issue of shares at Rs 80.63 per piece.
• The issue was made by LIC, SBI General Insurance, HDFC Life Insurance, and ICICI Lombard.

Further, the board approved a process of carrying out a 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.

According to the company, the fundraising will increase the overall capital of IDFC Fist Bank to 17.49%.

Insurance companies held a 3.57% stake in IDFC First Bank at the end of March 2024. ICICI Lombard was the biggest stakeholder in the category with a 1.02% stake in the company.

About IDFC FIRST Bank:

IDFC FIRST Bank is a new-age universal bank in India. It provides ethical banking, digital banking, and social good banking. The bank avoids complicated descriptions and calculations that customers don’t understand. It also does not charge on savings accounts including debit cards, IMPS, RTGS, NEFT, Cash deposits, cash withdrawals at ATMs, SMS alerts, cheque books, demand drafts, pay-orders and services that are usually charged in the market. 

Read More About IDFC FIRST Bank Limited Share Price Here!