This is a faster way to raise equity capital.The fundraising will increase the overall capital adequacy of IDFC Fist Bank to 17.49%, the company informed the stock exchange.Insurance companies held 3.57% stake in IDFC First Bank at the end of March 2024.
ICICI Lombard was the biggest stakeholder in the category with a 1.02% stake in the company.Capital adequacy describes the ratio of a lender's capital compared to the loans (risk weighted) it has given out.
Higher the capital adequacy ratio, the more money the bank has to lend and grow its business.On May 17, majority shareholders approved the merger of IDFC Ltd with IDFC First bank.
IDFC Bank was granted a license by the RBI along with Bandhan Bank in 2014.
In 2018, IDFC Bank and Capital First merged to form IDFC First Bank.
NSE
Marquee insurance companies are picking up stake in the Mumbai-based IDFC First Bank, which has market capitalisation of over ₹54,590 crore.The Board of Directors at IDFC First Bank have approved a proposal to raise ₹3,200 crore from Life Insurance Corporation of India (LIC), SBI General Insurance, HDFC Life Insurance, and ICICI Lombard via a preferential issue of shares at ₹80.63 apiece.One share of IDFC First Bank was worth ₹77.15 at 3:10 pm on May 30.In a preferential issue, a company can sell shares to a select group of investors under Section 81 of the Companies Act, 1956, which is neither a rights issue nor a public issue. This is a faster way to raise equity capital.The fundraising will increase the overall capital adequacy of IDFC Fist Bank to 17.49%, the company informed the stock exchange.Insurance companies held 3.57% stake in IDFC First Bank at the end of March 2024. ICICI Lombard was the biggest stakeholder in the category with a 1.02% stake in the company.Capital adequacy describes the ratio of a lender's capital compared to the loans (risk weighted) it has given out. Higher the capital adequacy ratio, the more money the bank has to lend and grow its business.On May 17, majority shareholders approved the merger of IDFC Ltd with IDFC First bank. IDFC Bank was granted a license by the RBI along with Bandhan Bank in 2014. In 2018, IDFC Bank and Capital First merged to form IDFC First Bank.
