IDFC First Bank’s share price recovered sharply after slipping 4% in early trade. The intra-day recovery is nearly 5% from the day’s low. The Board of the private lender concluded a meeting in which it approved a preferential issue of equity capital amounting to Rs 7,500 crore.
The bank will allot Rs 4,876 crore preferential equity share to Currant Sea Investments B.V. It is an affiliate company of global growth investor Warburg Pincus LLC, while the remaining shares worth Rs 2,624 crore will be allotted to Platinum Invictus B 2025 RSC, which is a wholly owned subsidiary of the Abu Dhabi Investment Authority managed by its Private Equities Department. The proposed issues are subject to shareholder and regulatory approvals.
“We believe the Indian banking sector presents an exciting opportunity and is poised for long-term growth. At Warburg Pincus, we have a long track record of partnering with exceptional teams. We have known the IDFC First Bank team for over a decade, dating back to their early days and have closely seen the build-out of the bank. We are excited to reinvest behind the IDFC First Bank team to support them in the next phase of growth and sustainable ROE improvement,” said Vishal Mahadevia, Managing Director, Head of Asia Private Equity, and Global Co-Head of Financial Services at Warburg Pincus.
“From day one, we have always built our foundation of the Bank with a long-term vision of building a world-class bank in India,” said V Vaidyanathan, Managing Director & CEO, IDFC FIRST Bank.
IDFC First Bank Q4 business update
The bank’s total business deposits gained 22.7% year-on-year to Rs 4.84 lakh crore in Q4 FY25 compared to Rs 3.94 lakh crore in the same period a year ago. Its loans and advances increased 20.3% YoY to Rs 2.41 lakh crore as against Rs 2 lakh crore in the last fiscal. It was up 4.7% sequentially. Its customer deposits increased 25.2% YoY to Rs 2.42 lakh crore from Rs 1.93 lakh crore in the previous year.
IDFC First Bank stock performance
The share price of IDFC First Bank has risen more than 8% in the past five trading days. The stock has given a return of 18% in the last one month. However, it has fallen 13% in the last six months. The stock has erased over 24% of investors’ wealth in the previous one year.