IDBI Bank to raise Rs 2,800 cr through a QIP offering

May also use follow-on-offer route; the lender also plans to raise $500 mn through overseas bond issue

IDBI Bank plans to raise equity capital up to Rs 2,800 crore through qualified institutional investors (QIP) or a follow-on public offer before March 2016.

The bank has estimated capital requirement of Rs 5,000 crore for the financial year ending March 2016. Out of this, the government would infuse Rs 2,200 crore. The balance would have to be raised from the market, IDBI Bank Deputy Managing Director B K Batra said.

Its board on Wednesday gave in-principle approval to raise the equity capital by issuing shares to institutional investors and retail investors for an amount not exceeding Rs 2,800 crore (including premium).
 

This resolution also empowered the bank to issue equity shares overseas also, he said.

The bank has conducted road shows for overseas bond offering. The amount raised could around $500 million for redeeming bonds that are maturing.