The board of directors of IDFC First Bank has approved a preferential issue of shares worth ₹7,500 crore to two investors — Currant Sea Investments B.V., an affiliate company of Warburg Pincus, and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The bank informed the bourses on Thursday that the capital raise would be through issuance of Compulsorily Convertible Preference Shares (CCPS) at a price of ₹60 per share. The two will together hold around 14.58 per cent stake in the bank on post-money basis on conversion of CCPS.
The early morning announcement saw the shares of the bank rise to an intraday high of ₹64.05 before settling at ₹62.98 per share, down 0.49 per cent over the previous close at the BSE.
The bank said that with this fund raise, its overall capital adequacy will increase from 16.1 per cent to 18.9 per cent, strengthening its balance sheet and positioning it for profitable growth.
Warburg Pincus had earlier offloaded its 2.3 per cent stake in the bank for an estimated ₹1,195 crore, reportedly making its exit from the bank.
“The bank has firmly moved into profits and is now at a pivotal stage, where our income growth is expected to consistently exceed OPEX (operating expenses) growth,” said V Vaidyanathan, MD and CEO, IDFC First Bank.