IDBI Bank downsizes QIP; Sets floor price

IDBI Bank downsizes QIP; Sets floor price

Shares of IDBI Bank edged higher Wednesday to trade at Rs 42.75 apiece, up 0.83%, after the lender has
set a floor price of Rs 40.63 per share for its proposed qualified institutional placement (QIP). The lender has also 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.
The bank may offer a discount of not more than 5% on the floor price for the issue.
IDBI Bank has also clarified 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.

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