IDBI Bank shares gain over 3% on fund raising plans

Shares of IDBI Bank rose by over three per cent today as the company received markets regulator Sebi's approval to raise Rs 3,771 crore through issuance of shares to qualified institutional players (QIPs).

The stock climbed 2.96 per cent to Rs 57.35 on BSE.

At NSE, shares of the company went up 3.14 per cent to Rs 57.45.

State-owned IDBI Bank has received Sebi's approval to raise Rs 3,771 crore through issuance of shares to QIPs, a move that would dilute the government's holding significantly in the lender.

IDBI Bank in a statement yesterday said that Sebi has acceded to the bank's request to permit it for raising capital by issuing equity shares aggregating up to Rs 3,771 crore by way of a QIP subject to provisions.

"The bank is exempted from the applicability of Regulation 82(c) of Sebi (ICDR) Regulation, 2009 as per Regulation 113 of Sebi (ICDR) Regulation, 2009," it said.

The government holding in the bank stands at 80.16 per cent.