LIC raises stake in IDFC First Bank to 2.68%, acquires shares via private placement

The state-run Life Insurance Corporation of India (LIC) has raised its stake in IDFC First Bank to 2.68% by acquiring additional shares in the private lender, a regulatory filing said on July 4.

The shares were acquired through a private placement offer, at a price of ₹80.63 apiece. The acquisition price is lower as compared to the closing price of ₹81.13 per share at the end of today's trading session.

With this acquisition, LIC has increased its shareholding in the bank from 1.42 crore shares to 20.02 shares, i.e., "0.20% of the pre-issue paid-up capital to 2.68% of the post issue paid-up capital of the said company," the filing added.

Also Read: LIC dividend: Here's how much the state-run insurer was to pay to the Centre, its largest shareholder

The increase in LIC's stake in IDFC First Bank comes ahead of the release of the first quarter results by the private lender. The bank's financial performance in the fourth quarter of the last fiscal had failed to impress the market.

How IDFC First Bank performed in Q4?

IDFC First Bank reported a net profit of ₹724 crore in the quarter ended March 2024, down 9.8% compared to ₹803 crore in the year-ago period.

The fall in profit came even as net interest income (NII) grew 24% to ₹4,469 crore in Q4FY24 compared to ₹3,597 crore in the year-ago quarter.

Meanwhile, the lender's shares have made a modest gain of around 3% in the last one year period. Year-to-date, the stock is down 7.6%.