IDBI downsizes QIP, sets floor price at Rs 40.63 apiece

IDBI Bank downsizes QIP to Rs 2,000 cr, sets floor price at Rs 40.63 apiece

Credit: Twitter/@IDBI_Bank.

IDBI Bank on Tuesday set the floor price at Rs 40.63 per share for its proposed qualified institutional placement (QIP), and downsized the fundraise by two-thirds to Rs 2,000 crore.

The bank's board at its meeting on October 29, 2020 had proposed to raise Rs 6,000 crore by issuing shares through QIP.

In a regulatory filing on Tuesday, IDBI Bank said the QIP committee of the board of directors at its meeting authorised opening of the issue on December 15, 2020.

"We further wish to inform...the floor price in respect of the issue, based on the pricing formula as prescribed under the Regulation of Sebi is Rs 40.63 per equity share," IDBI Bank said.

The bank may offer a discount of not more than 5 per cent on the floor price for the issue, it added.

In a separate filing, IDBI Bank said, "We write to clarify that the size of the issue as approved by the committee at its meeting today is an amount aggregating up to Rs 2,000 crore (base size of Rs 1,000 crore and Rs 1,000 crore under green shoe option).".

A meeting of the committee is scheduled to be held on December 18, 2020 (Friday) to consider and approve the issue price for the equity shares to be allotted to eligible qualified institutional buyers, it added.

IDBI Bank stock closed at Rs 42.40 apiece on BSE, up 3.16 per cent from its previous close.