Fund raising buzz generates interest in IDBI
On BSE, 5.39 lakh shares of the scrip were traded. The stock had an average daily volume of 22.77 lakh shares on BSE in past one quarter.
The scrip had touched a high of Rs 120.60 and a low of Rs 117.55 so far during the day. The stock had hit a 52-week high of Rs 181 on 20 November 2007 and a 52-week low of Rs 66.50 on 8 March 2007.
The scrip had underperformed the market in the one month to 26 February 2008, sliding 7.60% as against the Sensex's 1.91% decline. It had also underperformed the market in the past three months, falling 28.04% against the Sensex's 5.98% slide.
The mid-cap state-run lender has an equity capital of Rs 724.68 crore. Face value per share is Rs 10.
At the current price of Rs 120.10, the scrip trades at a PE multiple of 12.36, based on Q3 December 2007 annualised EPS of Rs 9.71.
Details about the follow-on public offer (FPO) and rights issues are still being worked out between the bank and the government and cannot be disclosed unless the scheme is approved, the reports said.
According to reports, Industrial Development Bank of India (IDBI) has already submitted its capital restructuring plans to the government. The government owns a 52% stake in the bank, which cannot be diluted.
The reports suggested that the bank does not have an urging need for capital at the moment, as its capital adequacy ratio (CAR) is at 14%, well above the central banks stipulation. The bank will need additional funds next year to meet Basel II norms and carrying out its expansion plans.
IDBI's net profit rose 38.7% to Rs 175.84 crore on 31.6% rise in operating income to Rs 2471.39 crore in Q3 December 2007 over Q3 December 2006.
IDBI's principal activities are to provide commercial banking services, which include merchant banking, direct finance, infrastructure finance, rehabilitation assistance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.