IDBI Bank falls 19%

IDBI Bank is the top loser on the BSE since the opening bell. The stock fell over 19% to Rs.30.80, not too far from its 20% LC of the day at Rs.30.50.

The stock price tanked, reacting to the new over 37 crore shares allotted to QIPs getting listed.

44 eligible QIPs were issued and allotted 37.18 crore shares at the issue price of Rs.38.60/share, aggregating Rs.1435 crore.

The Bank allotted shares after offering about 5% discount on the floor price of Rs.40.63/share. Apart from the discounted price, the market was disappointed that it could raise only Rs.1435 crore v/s QIP size of Rs.2000 crore.

The Bank, at its Board meeting on Saturday also said that it had the option to draw Rs.1500 crore as equity capital from its promoter LIC.

LIC held 51% stake prior to the QIP and after the QIP it has dipped, enabling it to infuse more equity to  move to 51%.