IDFC First Bank launches QIP; its second fund raising round in FY21

IDFC First Bank has launched a Qualified Institutional Placement (QIP) offer, which is the second fundraising exercise of the bank in FY21. The floor price is Rs 60.34 per share. However, the lender is offering a 5 percent discount.

According to sources, although demand is not very strong, they have successfully raised about Rs 3,500 crore of the Rs 3,000 crore that they intended to raise.

From that - Rs 1,200 crore is been pumped in by large FIIs and there are 4-5 large insurance companies who have also participated in this QIP. As per calculations, the tier-one ratio will increase by 2.4 percent to about 16.2 percent with an equity dilution of more than 9 percent.

The book value of the bank increases by 5 percent to about 32.74 per share. In May 2020 they had launched preferential issue of Rs 2,000 crore.