Infra-sector lender IDFC Ltd on Friday said its board has approved raising of up to Rs 80,000 crore by issuing non-convertible securities on private placement basis to expand business.
"The consent of the members of the company be and is hereby accorded to the Board to borrow from time to time, by issuance of non-convertible securities including but not limited to non-convertible debentures and commercial papers on private placement basis".
"With a view to augment the business of the company, up to an amount not exceeding Rs 80,000 crore," it said in a filing to the BSE, while releasing the minutes of the 18th Annual General Meeting held on July 30, 2015 in Chennai.
It said issuance of shares is to take place from the conclusion of 18th AGM until the conclusion of 19th AGM. IDFC said the limit of Rs 80,000 crore shall be within the overall borrowing limit as approved by the members at 17th AGM.
Among others, IDFC said the members were briefed about the in-principle approval by the RBI to establish a new bank in the private sector. IDFC said it expects to commence the banking operations by first week of October.
Further, it said a few shareholders also asked about the strategy to be adopted towards building up the bank, including corporate/shareholding structure of the bank, start up capital, location of branches, the structure of the board, amount of the shares that existing shareholders would get in the bank etc.
They also raised queries about non-performing asset and asset quality, IDFC said in the filing. Also, it resolved to pay dividend at 26 percent, or Rs 2.60 per share, on over 1.59 billion equity shares of the company, aggregating to approximately Rs 4.14 billion for 2014-15.