IDFC First Bank to consider fundraising on May 1

The stock of Indian banking company, IDFC First Bank, rose 1.12 per cent to Rs 22.50 in the early hours of Wednesday’s trading session after the bank informed that its board of directors will meet on May 1 to consider and approve fundraising by way of issue of equity shares of the bank on a preferential basis.

The bank informed about its scheduled meeting, which is going take place later this week, in a regulatory filing made on Tuesday. The private bank said that it is also planning to raise capital around Rs 2,000 crore via a preferential issue to contain any fallout caused due to COVID-19.

In addition to this, the bank also plans to issue shares to local and overseas investors in the proposed preferential allotment. However, the bank has not disclosed the name of any merchant bank for equity issuance. Meanwhile, apart from IDFC First Bank, other banks are also looking to raise capital through equity issuances.

Headquartered in Mumbai, the bank offers a range of financial solutions to individuals, small businesses and corporates.

At the time of market closing on Wednesday, the stock of IDFC First Bank Ltd was trading at Rs 22.05, down by 0.90 per cent against its previous close of Rs 22.25. Its 52-week high is Rs 51.85 while, its 52-week low is Rs 17.75 on BSE.