The board of Industrial Development Bank of India (IDBI) today did not take any decision on making a 26 per cent preferential issue to foreign investors.
An IDBI Bank release said: "Despite keen interest and firm commitments by reputed private equity investors to invest in the bank, the decision of the parent is awaited on signing the customary shareholders agreement. However, IDBI Bank will seek to raise capital in next 90 days to continue its pursuit of growth, quality and sustained profitability."
Chrysalis Capital, Ankar Capital and New Bridge Capital are in talks for picking up 26 per cent stake in IDBI Bank.
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Sources in the institution said the investment bankers will make a presentation to the IDBI board soon and only after that the institution will decide on whether it would go for an overseas investors or look around for domestic options.
IDBI's stake in the bank is currently pegged at around 57.14 per cent and another 14 per cent is held by the Small Industries Development Bank of India (SIDBI).
IDBI seems to be not comfortable with some of the covenants put by the foreign institutional investors even though they are common in these kind of agreements.
If the stake sell proposal with foreign players does not go through, IDBI is likely to look at the option of placing a preferential issue with some Indian investors or go in for a rights issue.
According to the revised guidelines of the Reserve Bank of India on holding pattern of a new private bank, the promoters' stake in the bank can be kept at 49 per cent.