New Delhi [India], May 30 : The IDFC First Bank has approved a fundraising plan through a preferential issue of equity shares, the company informed the exchange in a filing on Thursday.
The bank said that it will issue Rs 39.68 crore shares to selected investors at Rs 80.63 per share. A preferential issue of equity shares is a corporate funding mechanism where a company allocates shares to a specific group of investors under negotiated terms.
This method enables swift capital raising, often bringing strategic partners on board, while bypassing the extensive procedures of public offerings.
Following this allotment, the bank's issued and paid-up equity share capital will rise from 7,07,72,76,843 shares to 7,47,41,51,443 fully paid-up equity shares, each with a face value of Rs 10.
"The Board of Directors of the Bank at its meeting held today i.e., May 30, 2024, has, inter-alia, considered and approved to Issue, offer and allot 39,68,74,600 (Thirty-nine crore sixty-eight lakhs seventy-four thousand and six hundred) equity shares of face value of Rs 10/- each fully paid-up, on a preferential basis to the allottees, at a price of Rs 80.63/- per equity share, amounting to Rs 3,200 crore," the company said.
The board of directors of the company has approved this Rs 3,200 crore preferential issue, which is pending shareholder approval through a postal ballot.
The company informs that the investors participating in this preferential issue include many entities such as LIC, HDFC Life, Aditya Birla Sun Life Insurance, Bajaj Allianz Life Insurance, ICICI Lombard, and SBI General Insurance.
The company says that the fundraising is initiated to strengthen the bank's financial position and support its growth initiatives.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor