The private lender launched a qualified institutional placement (QIP) of equity shares on Tuesday (30 March 2021).
The capital raising committee of the board of directors of the bank, at its meeting held on 30 March 2021, authorised the opening of the QIP issue and approved the floor price of Rs 60.34 per equity share, the private sector bank said in a regulatory filing made after market hours yesterday.
The floor price is at 3.50% premium of IDFC First Bank's closing price of Rs 58.30 recorded on Tuesday.
The capital raising committee of the bank will meet on 6 April 2021, to determine the QIP issue price.
On 19 February 2021, the bank's board approved raising up to Rs 3,000 crore, in one or more tranches, by way of issuance of securities, through one or more permissible mode(s), including but not limited to a private placement, qualified institutions placement, follow-on public offering or a combination thereof.
In its draft placement document filed with the bourses, the bank said it intends to utilize the proceeds from the QIP issue to enhance its capital adequacy ratio, in accordance with regulatory requirements, to support its balance sheet growth and other general corporate purposes.
IDFC First Bank was founded by the merger of IDFC Bank and Capital First in December 2018.The bank provides a range of financial solutions to individuals, small businesses and corporates. As of 31 December 2020, the bank has 576 branches and 541 ATMs across the country.
The bank reported a net profit of Rs 130 crore in Q3 FY21 as compared to a net loss of Rs 1,639 crore in Q3 FY20. Total income during the quarter improved by 0.7% year-on-year (YoY) to Rs 4711.72 crore.
The scrip tumbled 4.46% to Rs 55.70 on the BSE. It traded in the range of 55.50 and 59.60 so far during the day.
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