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Investor worry not warranted on Warburg's part exit from Capital First

Stock falls 5%, but analysts believe PE's move a routine one

Hamsini Karthik  |  Mumbai 

The stock of Capital First fell a little over five per cent on Wednesday, reacting to its private equity promoter, Warburg Pincus, making a partial exit. At the opening of trade, Capital First announced that Cloverdell Investment, an affiliate of the Warburg Pincus group, would initiate this. During the day Warburg sold about 25 million equity shares (nearly 25 per cent stake) held in the company. With this deal, Warburg’s stake in Capital First has reduced to about 36 per cent, from 59.78 per cent. However, investors need not read much into this. On the downside, ...

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Investor worry not warranted on Warburg's part exit from Capital First

Stock falls 5%, but analysts believe PE's move a routine one

The stock of Capital First fell a little over five per cent on Wednesday, reacting to its private equity promoter, Warburg Pincus, making a partial exit. At the opening of trade, Capital First announced that Cloverdell Investment, an affiliate of the Warburg Pincus group, would initiate this. During the day Warburg sold about 25 million equity shares (nearly 25 per cent stake) held in the company. With this deal, Warburg's stake in Capital First has reduced to about 36 per cent, from 59.78 per cent. However, investors need not read much into this. On the downside, Warburg was an initial investor in Capital First, in 2012, and was instrumental in the non-banking finance company acquiring the operations of Future Capital, which has helped Capital First to hasten its loan growth. In this context, some analysts feel Warburg's part-exit might be a sentiment dampener, justifying the five per cent fall in the stock price.However, a large section also feel the exit might be linked to the ... The stock of Capital First fell a little over five per cent on Wednesday, reacting to its private equity promoter, Warburg Pincus, making a partial exit. At the opening of trade, Capital First announced that Cloverdell Investment, an affiliate of the Warburg Pincus group, would initiate this. During the day Warburg sold about 25 million equity shares (nearly 25 per cent stake) held in the company. With this deal, Warburg’s stake in Capital First has reduced to about 36 per cent, from 59.78 per cent. However, investors need not read much into this. On the downside, ... image
Business Standard
177 22

Investor worry not warranted on Warburg's part exit from Capital First

Stock falls 5%, but analysts believe PE's move a routine one

The stock of Capital First fell a little over five per cent on Wednesday, reacting to its private equity promoter, Warburg Pincus, making a partial exit. At the opening of trade, Capital First announced that Cloverdell Investment, an affiliate of the Warburg Pincus group, would initiate this. During the day Warburg sold about 25 million equity shares (nearly 25 per cent stake) held in the company. With this deal, Warburg’s stake in Capital First has reduced to about 36 per cent, from 59.78 per cent. However, investors need not read much into this. On the downside, ...

image
Business Standard
177 22