The Life Insurance Corporation of India (LIC), the biggest insurance company in India has raised a 0.2 per cent stake in IDFC First Bank Limited for 80.63 per share, as per a private placement offer (PPO) on Thursday, July 4th, according to an exchange filing.

LIC raised its stake in IDFC First Bank to 20.02 crore shares from 1.42 crore shares on a preferential basis. The public insurer’s investment in the bank stands at 2.68 per cent for a price of Rs.80.63 per share through the private placement offer, dated June 30th, issued by IDFC First Bank.

IDFC First Bank’s shares closed 0.40 per cent higher at 81.19, as compared with the previous day’s close at 80.87, on Wednesday, July 3rd. IDFC First Bank, is a private sector bank with a market value of 57,059.68 crore, as per the exchange filling.

The private bank disclosed its plans to raise 3,200 crore and issue 39.68 crore shares through a preference share allotment, in an exchange filing on May 30th. LIC’s current stakeholding makes them the largest shareholder in the private bank at 2.68 per cent, followed by HDFC Life Insurance at 1.31 per cent, and Aditya Birla Life Insurance at 1.06 per cent.

IDFC First Bank aims to use the money raised to focus on growth opportunities having high asset quality.

“After our last capital raise of 3,000 crores, the RBI had raised the risk weights on consumer credit exposures in November 2023, which consumed around 1% of the Bank’s capital. Hence, this capital is being raised prudently for future growth of the Bank while factoring the new risk weightages,” said the bank in the exchange filing on May 30th.

IDFC First Bank posted a 9.75 per cent fall in net profit at 724.35 crore for the fourth quarter that ended March 31st, as compared to 802.62 crore the same quarter the previous year.



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