IDFC First Bank on Friday said it will raise a fresh equity capital of Rs 2,000 crore from investors, including its promoter and a Warburg Pincus firm.

The decision was taken on Friday at the meeting of its board, which agreed to issue 86.24 crore shares on a preferential basis to ICICI Prudential Life Insurance Company, HDFC Life Insurance Company, Bajaj Allianz Life Insurance, Dayside Investment (Warburg Pincus group entity), and to its promoter, IDFC Financial Holding Company Ltd, the bank said in a regulatory filing.

The equity shares will be issued at Rs 23.19 apiece to the existing and new investors, subject to shareholders’ nod and other approvals.

“The bank will use this capital to power growth, to continue to invest in liabilities and asset franchise, technology and infrastructure platforms to expand reach, product suite and to improve customer experience,” it said in a release.

Under this fresh fundraiser, qualifying for common equity tier 1, or CET1, the bank will get Rs 800 crore from its promoter, while Rs 600 crore will be injected by ICICI Prudential Life.

HDFC Life Insurance Company, Bajaj Allianz Life Insurance and Dayside Investment will pump in Rs 200 crore each into the bank.

The promoter will acquire 34,49,76,282 shares and ICICI Prudential Life 25,87,32,212 units, while the rest of the three investors will buy 8,62,44,070 shares each.

The private sector lender said the new capital infusion will strengthen its capital adequacy to 15.5 per cent with CET 1 ratio at 15.3 per cent (calculated on December 31, 2019, base of 13.28 per cent, substantially higher than the regulatory requirements).