By Devidutta Tripathy and Suvashree Choudhury
MUMBAI (Reuters) - IDFC Bank Ltd, one of India's two newest banks, will acquire non-bank financial firm Capital First Ltd in a share swap deal valued at about $1.5 billion as it looks to boost its retail lending activities.
The deal is conditional on central bank and other regulatory approvals.
The deal values Capital First - owned more than a third by private equity firm Warburg Pincus - at 938.25 rupees a share based on the two companies' Friday closing price and giving the company a market value of 92.78 billion rupees ($1.46 billion), Reuters calculations showed.
The deal is "pursuant to IDFC Bank's stated strategy of 'retailising' its business to complete their transformation from a dedicated infrastructure financier to a well-diversified universal bank," the two sides said in a joint statement.
Capital First, which also counts Singapore state investor GIC among its major investors, will bring in a loan book of almost 230 billion rupees as of Sept. 30, three million customers and a distribution network spanning 228 locations across the country.
($1 = 63.6000 Indian rupees)
(Reporting by Suvashree Dey Choudhury and Devidutta Tripathy; Editing by Shri Navaratnam)
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