IDBI Bank on Thursday allotted about 33.99 crore equity shares to Life Insurance Corporation of India (LIC) at a price of ₹61.73 per share (inclusive of premium amount of ₹51.73 per share) aggregating up to ₹2,098.19 crore through preferential issue.
This allotment follows approval by the bank's board to the preferential allotment of equity shares to LIC aggregating up to 51 per cent of post issue paid up capital of the bank.
The bank's board has also given its nod to the proposal for seeking shareholders’ approval through postal ballot for — preferential issue of capital to LIC aggregating up to 51 per cent of post issue paid-up capital of the bank; increase in authorised capital of the bank from ₹8,000 crore to ₹15,000 crore; re-classification of LIC as promoter of the bank consequent upon acquisition of 51 per cent controlling stake by them in IDBI Bank; and alterations in Articles of Association of the bank.