IDFC First Bank fundraising: Rs 3,000 crore QIP set to open today; check price

IDFC First Bank is likely to raise Rs 3,000 crore via a qualified institutional placement (QIP) on October 3, CNBC TV18 reported unidentified sources. The issue will include a green shoe option. The QIP price is likely to be around Rs 90-91 per share, which comes at a 3-4 percent discount to the closing price of Rs 94.25 on October 3.

Bankers for the QIP include a mix of domestic and foreign firms. Shareholders had approved fund raising in the annual general meeting (AGM) held in August this year.

IDFC First Bank launched a QIP in 2021 as well, with the issue price coming in at Rs 57.35 per share. The bank allotted of 52.31 crore equity shares to qualified institutional buyers for a total consideration of  Rs 3,000 crore.

Technical Details

IDFC Bank is trading below its 5-, 10-, and 20-day averages, but is trading higher than its 50-, 100-, and 200-day averages. The private lander’s market capitalisation clocked in at Rs 63,291.9 crore, while the firm’s one-year beta stands at 1.29, indicating high volatility in the counter.
Compared to Nifty 50’s one-year run at 16.1 percent, IDFC First Bank jumped 97.2 percent in the same time period, almost doubling investors’ wealth. The bank’s shares also outperformed its sector by 54.37 percent in the past year, according to Trendlyne data. The scrip’s RSI is mid-range at 56.7, indicating that the stock is neither overbought, nor oversold.

As of June 2023, promoters held 39.9 percent in the bank, while DIIs and FIIs owned 20.9 and 11.7 percent respectively. The public held 27.5 percent stake in the lender.

Most of the yearly gains occurred over the past six months, as IDFC First Bank soared 71.68 percent during this period. From its 52-week high of Rs 100.7, the counter closed for trade on October 3 lower by 6.4 percent.

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