IDBI Bank snaps 3-day winning streak, down 3% after clarification
On February 23, the bank had received approval Sebi's approval to raise Rs 3,771 crore from qualified investors. LIC was likely to invest close to Rs 1,500 crore in the bank through preferential shares.
By ET Online |
NEW DELHI: Extending its three-day winning streak, shares of IDBI Bank ended with gains of 2.19 per cent after slumping about 3 per cent in trade on Thursday after the company informed BSE that its QIP plan was not put on hold, but it was actively looking for the suitable market condition.
The public lender had earlier announced that it would sell some of its non-core assets and would place equity with the largest domestic investor, Life Insurance Corporation to raise capital.
At 10.10 AM, the stock fell 2.81 per cent to hit a low of Rs 62.20 on BSE.
On February 23, the bank had received approval Sebi's approval to raise Rs 3,771 crore from qualified investors. LIC was likely to invest close to Rs 1,500 crore in the bank through preferential shares.
"The bank had done a road show for the QIP but given the weakness in the equities market, we may not raise the entire amount immediately," B K Batra, deputy managing director of the bank had told the Economic Times.
State-run lender has been on a roll even since the Finance Minister Arun Jaitley in his Budget speech on Monday said the government was considering bringing down its stake in the public lender to below 50 per cent.
The lender this week announced a transformational plan, entailing an investment of about Rs 20,000 crore over a three-year period. The plan includes doubling the bank's business volumes and reducing gross NPA level below 3 per cent.
The public lender had earlier announced that it would sell some of its non-core assets and would place equity with the largest domestic investor, Life Insurance Corporation to raise capital.
At 10.10 AM, the stock fell 2.81 per cent to hit a low of Rs 62.20 on BSE.
On February 23, the bank had received approval Sebi's approval to raise Rs 3,771 crore from qualified investors. LIC was likely to invest close to Rs 1,500 crore in the bank through preferential shares.
"The bank had done a road show for the QIP but given the weakness in the equities market, we may not raise the entire amount immediately," B K Batra, deputy managing director of the bank had told the Economic Times.
State-run lender has been on a roll even since the Finance Minister Arun Jaitley in his Budget speech on Monday said the government was considering bringing down its stake in the public lender to below 50 per cent.
The lender this week announced a transformational plan, entailing an investment of about Rs 20,000 crore over a three-year period. The plan includes doubling the bank's business volumes and reducing gross NPA level below 3 per cent.
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