IDBI Bank Gets Shareholders’ Nod To Raise Up To Rs 10,000 Crore
Shareholders approved plans for a QIP, and selling of infrastructure bonds.
Shareholders of IDBI Bank Ltd. approved plans to raise up to Rs 10,000 crore through various modes like bond sales and share allotment to institutional buyers.
The lender can raise up to Rs 5,000 crore through various modes including a qualified institutional placement and the remaining Rs 5,000 crore through issue of infrastructure bonds in one or more tranches, it said in an exchange filing.
The government’s holding in the bank stands at 73.98 percent. As per existing norms, the government equity in a public sector bank cannot go below 52 percent to maintain the character of state-owned banks.
This story corrects an earlier version which referred to the bank’s plans in 2016 to bring in strategic investors as one which was still under discussion. It also corrects a reference to Kishore Kharat as the current CMD of the bank.