IDBI Bank's board has decided a floor price of Rs40.63 per equity share for its qualified institutional placement (QIP). However, the board has further downsized the QIP size to Rs2,000cr.
IDBI Bank on Tuesday said, "we write to clarify that the size of the Issue as approved by the Committee at its meeting today is an amount aggregating up to Rs2,000cr (Base size of Rs1,000cr and Rs1,000cr under greenshoe option)."
Earlier, the bank had proposed QIP worth Rs6,000cr.
Further, in the regulatory filing, IDBI Banks stated that accordingly, the floor price in respect of the aforesaid issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is 40.63 per Equity Share.
According to the SEBI ICDR Regulations, IDBI also said, the Bank may offer a discount of not more than 5% on the floor price so calculated for the Issue.
IDBI Bank's Committee is scheduled to meet on December 18, 2020, to, inter alia, consider and approve the issue price, including a discount, if any, thereto as permitted under the SEBI ICDR Regulations, for the Equity Shares to be allotted to eligible qualified institutional buyers, according to the Issue.
At around 2.12 pm, IDBI Bank was trading at Rs42.75 per piece up by 0.83% on Sensex.