SEBI approves IDBI Bank’s request to raise Rs 848 crore from LIC via preferential issue
Public sector IDBI Bank on Wednesday said it has raised over Rs 848 crore by allotting equity shares to LIC on preferential basis.
IDBI Bank referred Sebi’s approval letter dated March 29, 2016, whereby the market regulator accepted Bank’s request to allot shares to LIC on preferential basis. “It has been decided to accede to the request of the Bank and permit it to raise capital by issue of equity shares aggregating up to Rs 848.42 crore to LIC by way of preferential allotment”, IDBI said in a BSE filing referring to the Sebi letter.
Sebi said the acceptance of Bank’s request was solely for the purpose of achieving minimum level of public shareholding as required under Securities Contracts Regulation (Rules), 1957. Earlier in 2014, government had notified rules for minimum 25% public shareholding in listed state-owned firms.
To comply with these norms, several listed PSUs need to raise their public shareholding to minimum 25% by August 21, 2017, said the notification for amendment to the Securities Contracts (Regulation) Rules.