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IDBI Bank downsizes QIP to Rs 2,000 cr, units flooring value at Rs 40.63 apiece

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New Delhi: IDBI Bank on Tuesday set the flooring value at Rs 40.63 per share for its proposed certified institutional placement (QIP), and downsized the fundraise by two-thirds to Rs 2,000 crore.

The financial institution’s board at its assembly on October 29, 2020 had proposed to boost Rs 6,000 crore by issuing shares by way of QIP.

In a regulatory submitting on Tuesday, IDBI Bank stated the QIP committee of the board of administrators at its assembly authorised opening of the problem 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 stated.

The financial institution could supply a reduction of no more than 5 per cent on the ground value for the problem, it added.

In a separate submitting, IDBI Bank stated, “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 gathering of the committee is scheduled to be held on December 18, 2020 (Friday) to contemplate and approve the problem value for the fairness shares to be allotted to eligible certified institutional consumers, it added.

IDBI Bank inventory closed at Rs 42.40 apiece on BSE, up 3.16 per cent from its earlier shut.

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