IDBI Bank to raise up to Rs5,294 crore

State-owned IDBI Bank said it intended to raise up to Rs5,294 crore through various means, including share sale to the government and LIC.

The bank's board at its meeting yesterday fixed the issue price of Rs112.99 per share for preferential issue of shares, IDBI Bank said in a statement.

The board proposes to issue 18.85 crore equity shares of Rs10 each at a price of Rs112.99 per share aggregating to Rs2,130.50 crore upon conversion of Tier I Bonds held by the government of India in the bank into equity, it said.

At the same time, according to the board, the bank would issue up to 22.12 crore shares at a price of Rs112.99 per share amounting to Rs2,500 crore to the government.

Also, the bank would issue up to 5.86 crore equity shares of Rs10 each at a price of Rs112.99 per share aggregating to Rs662.79 crore to Life Insurance Corporation of India (LIC), it said.

Shares of IDBI Bank closed at Rs112.35 a piece, up 2.65 per cent on the BSE. According to the board, the fund raising would be subject to the approval of the shareholders and regulatory authorities.