IDBI Bank raises Rs 1435 crore via QIP issue

The state-run bank on Friday (18 December 2020) announced that the qualified institutions placement (QIP) committee of the board approved the closure of the QIP issue on 18 December 2020.

The sub-committee of the board approved issuing 37,18,08,177 equity shares at Rs 38.60 each to the eligible qualified institutional buyers in the QIP issue, aggregating to Rs 1435.18 crore. The issue was subscribed by 44 qualified institutional buyers (QIBs).

The issue price is at a discount of 5% to the floor price of Rs 40.63. The issue opened on 15 December 2020.

The bank intends to utilise the net proceeds to augment its capital adequacy thereby enhancing the long-term resources of the bank and to maintain sufficient liquidity for meeting funding requirements of its business activities.

In October 2020, the bank's board approved raising upto Rs 6,000 crore through QIP issue. IDBI Bank offers a wide range of products from savings and current bank account to loans for retail and MSME customers or agri-loans to farmers.

As on 30 September 2020, the Government of India holds 47.11% stake, while Life Insurance Corporation of India held 51% stake in the IDBI Bank.

The bank reported a standalone net profit of Rs 324.40 crore in Q2 September 2020 compared with net loss of Rs 3,458.84 crore in Q2 September 2019. Total income fell 7.54% to Rs 5,761.06 crore in Q2 FY21 from Rs 6,231.02 crore in Q2 FY20.

The scrip fell 1.70% to Rs 40.50 on Friday.

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