IDFC First Bank gains 9 percent

Shares of IDFC First Bank hit a fresh 52-week high of Rs 63.05, up 9 per cent in the intra-day trade, on the BSE on Friday after the bank's board approved raising up to Rs 3,000 crore.

"The Board at its meeting, February 18, noted the significant opportunities for growth of the Bank based on the strong capabilities the Bank has built and the strong outlook for economic recovery in India, and has approved raising of funds for an amount aggregating up to Rs 3,000 crore, in one or more tranches," it said in an exchange filing.

Fund raising has been approved by way of issuance of securities, through one or more permissible mode(s), including but not limited to a private placement, qualified institutions placement, follow-on public offering or a combination thereof, subject to shareholders' approval, IDFC First Bank said in a regulatory filing.

As per a back-of-thehand calculation by ICICI Securities, this capital raising will lead to equity dilution of 7-8 per cent while book value should increase by around 7pc. In the past three months, stock of IDFC First Bank has rallied 85 per cent, as compared to a 17pc rise in the S&P BSE Sensex.

In October-December quarter (Q3FY21), the bank's overall funded assets increased 0.7 per cent year on year (YoY) to Rs 1.10 trillion.