IDFC First Bank on Thursday said its board of directors has approved the allotment of 377.5 million equity shares, with a face value of Rs 10, to IDFC Financial Holding Company Ltd, the wholly owned subsidiary of IDFC Ltd, on a preferential basis by way of private placement at Rs 58.18 per equity share.
This comes after IDFC Ltd decided to infuse Rs 2,200 crore into the bank as growth capital.
In an exchange notification, the private lender stated, “…we wish to inform that the duly authorized committee of the board of directors of IDFC First Bank approved the allotment of 377.5 million equity shares of face value of Rs 10 each fully paid-up at a price of Rs 58.18 per equity share (including premium of Rs 48.18 per equity share) to IDFC Financial Holding Company, a wholly-owned subsidiary of IDFC Limited, promoter, on preferential basis by way of private placement”.
Consequent to this process, IDFC Financial Holding’s stake in the bank will go up 40 per cent of the banks’ paid up equity share capital.
For this preferential allotment of equity shares, the lender has already received in-principle approval of the stock exchanges. Further, the application for listing and trading approval of the stock exchanges for the equity shares allotted will be made in due course, the bank said.
Consequent to the allotment, the issued and paid up equity share capital of the bank has increased to 6618.1 million equity shares of Rs 10 each.
IDFC First Bank is in the process of a three-way reverse merger, wherein IDFC Financial Holdings and IDFC Ltd will merge with the bank. Currently, IDFC Financial Holding has 36.88 per cent stake in the private lender. In turn, IDFC Ltd holds 100 per cent stake in IDFC Financial Holding.
Shares of the bank closed 1.68 per cent down at Rs 55.13 on the BSE on Thursday.