IDBI Bank India to raise Rs1,500 crore by selling stake to LIC
State-owned IDBI Bank on Saturday said it plans to raise up to Rs.1,500 crore by selling stake to Life Insurance Corporation of India (LIC) by preferential issuance of shares to the insurer.
The board has approved the proposal for preferential issue of capital to Life Insurance Corporation, aggregating up to Rs.1,500 crore (inclusive of premium amount) subject to the government of India's approval, IDBI Bank said in a statement.
LIC and various other schemes currently hold 7.25% stake in IDBI Bank. Last week, the bank also got board approval for raising up to $500 million through tier I bonds. The board has approved issuance of Basel III compliant Additional Tier 1 (AT 1) bonds in offshore markets up to $500 million to enhance tier 1 capital of the bank, the bank had said.