IDFC First Bank sets QIP floor price at Rs 94.95 per share; stock falls over 3%

Shares of IDFC First Bank fell over 3% to the day's low of Rs 91.30 in Wednesday's trade on the NSE following the approval of the floor price for its upcoming Qualified Institutional Placement (QIP) issue.

The company's Capital Raise and Corporate Restructuring Committee authorised opening of the issue in the Board meeting held on Tuesday.

The floor price has been set at Rs 94.95 per equity share.

A meeting of the committee of the bank will be held on October 6, 2023, to consider and determine the issue price of equity shares and discount, if any.

The price action in IDFC Bank shares was accompanied by significant volumes as more than 3.41 crore shares changed hands on the NSE around 1:40 p.m. The traded value of the share stood at Rs 314.52 crore.

Today's decline marks the second successive correction in the counter while the stock is trading at a discount of 9% from its 52-week high of Rs 100.70, which it hit on September 5, 2023.

IDFC First Bank shares have given over 73% returns over the past 12 months, outperforming the broader Nifty index which has returned 15% during this time.

It is also trading above its 50-day and 200-day Simple, Moving Averages (SMAs) with very high volatility. One year beta is 1.3 according to Trendlyne.

Momentum indicators RSI and MFI stood at 52 and 38.1, respectively which indicates a potential upside. A number below 30 is considered as an overbought zone while above 70 is considered an overbought zone.

IDFC First Bank's loans and advances grew 24% year-on-year (YoY) to Rs 1.71 lakh crore for the first quarter ended June 2023. The same stood at 1.37 lakh crore in the June quarter of last year. The sequential growth was at 6.7%.

Customer Deposits for the quarter under review rose from Rs 1.02 lakh crore in Q1FY23 to Rs 1,48,508 crore in Q1FY24, showing a YoY growth of 44%, while the QoQ growth was nearly 9%.

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