Idfc First Bank Stock Gains As Board Approves Raising Rs 7,500 Crore From Warburg, Adia Affiliates

SUMMARY

Shares of IDFC First Bank gained complete a percent connected Thursday aft nan lender's board approved raising astir ₹7,500 crore from 2 awesome investors, Currant Sea Investments B.V. and Platinum Invictus B 2025 RSC Ltd.

IDFC First Bank banal gained 1.20% to Rs 64.05 against nan erstwhile adjacent of Rs 63.29 connected SBE. Market cap  of nan backstage bank rose to Rs 46,678 crore. 

The costs will beryllium raised done a preferential rumor of compulsorily convertible penchant shares (CCPS) astatine ₹60 per share, pinch Currant Sea group to put ₹4,876 crore and Platinum Invictus contributing ₹2,624 crore. Post-conversion, Currant Sea will clasp a 9.48% stake, while Platinum Invictus will ain 5.10% of nan bank. The move intends to boost nan bank's superior adequacy from 16.1% to 18.9%.

“The slope has firmly moved into profits and is now astatine a pivotal stage, wherever our income maturation is expected to consistently transcend OPEX growth, starring to improved operating leverage. We expect galore businesses which are successful nan finance shape to move profitable pinch scale,” said V Vaidyanathan, Managing Director and CEO astatine IDFC FIRST Bank. “It is awesome to person Warburg Pincus backmost and to invited a wholly owned subsidiary of ADIA arsenic our shareholder,” Vaidyanathan added. Hamad Shahwan AlDhaheri of ADIA mentioned that this finance intends to support nan bank's maturation and meet nan rising request for financial products successful India.

Vishal Mahadevia of Warburg Pincus expressed excitement astir reinvesting successful IDFC First Bank, supporting its maturation and sustainable return connected equity (ROE) improvement. The bank's strategical backing boost is expected to fortify its equilibrium expanse and support its maturation ambitions, positioning it powerfully successful nan competitory Indian banking sector. The investments align pinch nan bank's strategy arsenic it moves into a shape wherever income maturation is group to outpace operating expenses, enhancing wide profitability.

Published on: Apr 17, 2025 11:52 AM IST