Private sector lender IDFC First Bank said on Thursday that America’s private equity firm Warburg Pincus LLC and Abu Dhabi Investment Authority (ADIA) will jointly invest Rs 7,500 crore in the bank. This investment will be through preferential shares, which aims to support the growth of the next phase of the bank.
The bank said in a release that Warburg Pinkus would invest Rs 4,876 crore through its colleague Current C Investments BV. At the same time, ADIA will invest Rs 2,624 crore through its full -ridden subsidiary Platinum Inwrists B2025 RSC.
The Board of IDFC First Bank approved the issue of 1.25 billion perfectly convertible cumulative preference shares (CCPS), out of which 8126.9 lakh CCPS will be allotted to current C Investments BV at the rate of Rs 60 per share. Similarly, 4,371.8 lakh CCPS will be allocated at the rate of Rs 60 per share to Platinum Invitus B2025 RSC.
The bank has said that after the conversion of CCPS, current C Investments BV will have 9.48 percent and Platinum Invastus B2025 RSC will have 5.1 percent stake on the post-money basis. According to capitline data, the country is the fourth major amount collected by private sector in the country through equity. Earlier, ICICI Bank had raised Rs 15,000 crore and Axis Bank had raised Rs 12,500 crore and Rs 10,000 crore.
Apart from this, the board of the bank has also approved the revival of the bank’s authorized share capital. The current share capital of the bank is a total of Rs 4,000 crore, including 12.96 billion equity shares and 10.38 crore preference shares. After a fresh classification, there will be 12.7 billion equity shares and 1.3 billion preferential shares and the total share capital will be Rs 14,000 crore.
V Vaidyanathan, Managing Director and CEO of IDFC First Bank, said, “The support of Warburg Pincus and the ADIA -owned subsidiary is welcome to become our shareholder. We thank both of them for relying on the bank’s development plans, who have expressed confidence in us even in unstable global conditions. This will increase operational profits.
First Published – April 17, 2025 | 11:21 PM IST
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