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The IDFC First Bank promoted by IDFC Ltd is all set to expand its total capital. The bank has decided on issuing fresh shares on a preferential basis to existing as well as new investing institutions. Preferential shares of Rs 23.19 each will be issued by the bank. The bank aims to raise about Rs 2000 crores through the fresh issue.
The number of shares to be issued are currently fixed as 862.4 million which form a part of preferential equity. The preferential issue mainly aims at the existing share-holders who are, ICICI Life Insurance, Bajaj Life Insurance, HDFC insurance, IDFC Ltd etc. the bank expects a total of Rs 800 crores from IDFC Ltd, Rs 600 crores form ICICI, Rs 200 crore from HDFC, Rs 200 Crores from Bajaj and another Rs 200 crores from Dayside Investment. This fresh issue will increase the bank’s total capital from Rs 5,636 crores to Rs 7,538 crores.
The bank otherwise also is in the path of growth as it has registered a retail deposit growth of 16% quarterly and 157% yearly to a whooping total of Rs 33,898 crores till the end of the financial year 2019-2020. The bank also reported a recent loss in December 2019 of about 1,639 crores which is explained as a provisioning to a telecom giant.
