IDBI Bank okays preferential issues to LIC, Govt

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SME Times News Bureau | 19 Sep, 2019
IDBI Bank on Thursday approved the proposal for preferential issue to the government and LIC aggregating after their infusion of Rs 4,557 crore and Rs 4,743 crore, respectively, a total capital infusion of a little over Rs 9,000 crore.

At 12.45, the IDBI Bank share price was down by 2.52 per cent at Rs 27.10.

The board of directors, at a meeting on September 19, approved the proposal for preferential issue of capital to the government and LIC aggregating up to Rs 4,557 crore and Rs 4,743 crore, respectively, subject to regulatory approvals, if any, the bank's regulatory filing said.

"In terms of Regulation 30 of the SEBI (LODR) Regulations, 2015, it is hereby advised that the Board of Directors of IDBI Bank, at its meeting held on September 19, 2019, has approved the proposal for Preferential Issue of Cap ital to Government of India and Life Insurance Corporation of India aggregating up to Rs 4,557 crore and Rs 4,743 crore respectively, subject to statutory/regulatory approvals, if any, required to be obtained in this regard", it said.

Shares of IDBI Bank fell 3 per cent on opening on September 19 after the company approved preferential issue of capital to Life Insurance Corporation a nd the government.

In March, the Reserve Bank of India categorised IDBI Bank as a private sector lender following acquisition of majority stake by LIC.