The promoters of IDFC Ltd. have increased their stake in IDFC First Bank Ltd. to the maximum permissible limit.
IDFC First Bank will issue, offer and allot 37.75 lakh shares of face value Rs 10 each to IDFC's wholly owned subsidiary IDFC Financial Holding Co. Ltd. at Rs 58.18 apiece, according to exchange filing on Saturday.
The transaction, valued at Rs 2,196 crore, will increase IDFC's stake in the private lender to 39.99% from 36.37% at present. Post allotment, issued and paid-up equity share capital of the bank will increase from Rs 62,386 crore to Rs 66,161 crore.
The transaction comes a little more than five years after IDFC Bank and First Capital merged in a share swap deal. The shareholding of IDFC promoters had then reduced to 37.6% in IDFC First Bank. Capital First promoters held 10.2% in the amalgam.
According to Indian banking laws, promoters cannot hold more than 40% stake in a listed commercial bank in India.
On Friday, shares of IDFC First Bank fell 1.34% to Rs 58.80 apiece on the BSE even as the benchmark Sensex ended the day 1.52% higher at 60,841.88 points.
(Correction: A previous version of this story misstated the transaction value. The error is regretted.)
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