IDBI Bank Allots Shares worth Rs. 14,500 Crore to LIC

IDBI Bank said in a communication that it has allotted shares worth Rs. 14,500 core to Life Insurance Corporation. The move was part of the ongoing acquisition of a controlling stake in the bank by the insurance company. About 238.8 crore shares at a price of Rs. 60.73 apiece were allotted to LIC through a preferential issue on Friday, according to a regulatory filing by IDBI Bank.

IDBI Bank shareholders had in October approved the decision by the board of the lender to transfer the shares as part of the acquisition by Life Insurance Corporation.

LIC is in the process of increasing its stake in IDBI Bank to 51 per cent, which would help it enter the banking space.

At the end of the September quarter, Life Insurance Corporation held a 7.98 per cent stake in IDBI Bank.