IDBI Bank Ltd approves preferential allotment to LIC

The Board of Directors of IDBI Bank Ltd, in the meeting held on October 4, 2018, have approved the Preferential Allotment of Equity Shares to LIC aggregating upto 51% of Post Issue Paid up Capital of the Bank and the proposal for seeking shareholders' approval through Postal Ballot for Preferential Issue of Capital to LIC aggregating upto 51% of Post Issue Paidup Capital of the Bank.

The board approved increase in Authorized Capital of the Bank from Rs. 8000 crore to Rs. 15000 Crore.

The board also approved re-classification of LIC as Promoter of the Bank consequent upon acquisition of 51% Controlling stake by them in IDBI Bank; and alterations in Articles of Association of the Bank.

The Bank has allotted 339897328 equity shares to Life Insurance Corporation of India at a price of 61.73 per share (inclusive of premium amount of 51.73 per share) aggregating upto 2098.19 crore through Preferential Issue on October 04, 2018.

Shares of IDBI BANK LTD. was last trading in BSE at Rs.55.5 as compared to the previous close of Rs. 54. The total number of shares traded during the day was 2237630 in over 5185 trades.

The stock hit an intraday high of Rs. 57 and intraday low of 53.65. The net turnover during the day was Rs. 124148995.

Source : Equity Bulls

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