IDBI Bank seeks EGM nod for preferential issue

The Board of Directors of IDBI Bank Ltd at its meeting held on March 02, 2012, has approved the proposal for Preferential Issue of capital, subject to approval from shareholders at the EGM to be held on March 28, 2012 at 3.30 P.M.and other Statutory / Regulatory approvals, if any.

The EGM will consider issue of 18,85,56,509 equity shares of Rs. 10/- each at a price of Rs. 112.99 per share aggregating to Rs. 2130.50 crore upon conversion of Tier I Bonds held by GoI in the Bank into equity in terms of GoI's letter dated November 22, 2011.

The EGM will consider issue of upto 5,86,58,844 equity shares of Rs. 10 each at a price of Rs. 112.99 per share aggregating to Rs. 662.79 crore to Life Insurance Corporation of India in terms of LIC's letter dated February 24, 2012 and issue of upto 22,12,58,518 equity shares of Rs. 10/- each at a price of Rs. 112.99 per share aggregating to Rs. 2500 crore to Government of India in terms of the final approval letter to be received from GoI in this regard.

The IDBI Bank Ltd stock closed the day at Rs.112.35, up by Rs.2.90 or 2.65%. The stock hit an intraday high of Rs.114.45 and low of Rs.107.70.

The total traded quantity was 11.55 lakhs compared to 2 week average of 7.70 lakhs.

Source : Equity Bulls

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