IDBI Bank rises after launch of QIP issue

IDBI Bank rose 0.83% to Rs 42.75 after the bank launched a qualified institutional placement (QIP) of equity shares on Tuesday (15 December 2020).

The QIP issue as approved by the special committee is an amount aggregating up to Rs 2,000 crore (base size of Rs 1,000 crore and Rs 1,000 crore under oversubscription option). The floor price for the issue is set at Rs 40.63 per share, which is 4.17% discount to yesterday's closing price of Rs 42.40. The bank may offer a discount of upto 5% on the floor price so calculated for the issue. The committee will meet on 18 December 2020 to approve the issue price.

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.

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