IDFC First Bank's QIP for Rs 3,000 crore is expected to begin today; check the pricing

Unidentified sources told CNBC TV18 that IDFC First Bank is set to raise Rs 3,000 crore through a qualified institutional placement (QIP) on October 3. A green shoe option will be included in the issue. The QIP price is expected to be around Rs 90-91 per share, representing a 3-4 percent reduction to the October 3 closing price of Rs 94.25.

The QIP's bankers include a mix of domestic and foreign corporations. In the annual general meeting (AGM) conducted in August of this year, shareholders authorised money raising.

IDFC First Bank also announced a QIP in 2021, at an issue price of Rs 57.35 per share. The bank distributed 52.31 crore equity shares to qualifying institutional buyers for a total of Rs 3,000 crore.

Technical Details

IDFC Bank is trading lower than its 5-, 10-, and 20-day moving averages, but higher than its 50-, 100-, and 200-day moving averages. The private lander's market capitalization is Rs 63,291.9 crore, and the company's one-year beta is 1.29, suggesting strong volatility.

In comparison to the Nifty 50's 16.1 percent one-year gain, IDFC First Bank increased 97.2 percent in the same time period, nearly tripling investors' wealth. According to Trendlyne statistics, the bank's stock outperformed its industry by 54.37 percent in the previous year. The RSI for the stock is 56.7, suggesting that it is neither overbought nor oversold.

Promoters owned 39.9 percent of the bank as of June 2023, while DIIs and FIIs owned 20.9 and 11.7 percent, respectively. The general public owned 27.5 percent of the lender.

The majority of the year's gains happened in the last six months, when IDFC First Bank increased by 71.68 percent. The currency closed for trading on October 3 at Rs 100.7, down 6.4 percent from its 52-week high.