IDFC First Bank to raise Rs 2,000cr capital from promoter, Warburg Pincus, 3 others

Private sector IDFC First Bank will raise Rs 2,000 crore equity capital by issuing shares to its promoter, and four non-promoter entities, including Warburg Pincus and three insurers, the private lender said.

Warburg Pincus affiliate Dayside Investment Ltd and insurance firms ICICI Prudential Life Insurance Company,HDFC Life Insurance, and Bajaj Allianz Life Insurance will infuse capital in the lender.

The lender ina regulatory filing said that the board of directors in a meeting held on May 1, 2020 approved to issue 86,24,40,704 equity shares on preferential basis for a total amounting to Rs 2,000 crore which to the five entities including its promoter IDFC Financial Holding Company Limited.

The promoter will acquire34,49,76,282 shares and ICICI Prudential Life 25,87,32,212 shares. The rest of three investors will buy8,62,44,070 shares each.

IDFC First Bank said thatDayside Investments Ltd along with Cloverdell Investment Ltd, both Warburg Pincus LLC Group entities, together holds 47,72,64,867 equity shares constituting 9.92 per cent of the pre-issue shareholding and 56,35,08,937equity shares constituting 9.93 per cent of the post issue shareholding of the bank.

The total number of paid up equity shares of the bank will be 567,23,43,720 post the issue, it said.

"The networth of the bank post the issue and as added to the networth as of 31st December 2019 will beRs 17,240 crore," IDFC First Bank said.

The lender said that the said preferential allotment shall be subject to approval of the members of the bank proposed to be sought through Postal Ballot by way of 'Remote E-Voting' in terms of the applicable Circulars recently issued by MCA (April 2020) in view of the current extra-ordinary circumstances due to COVID-19 pandemic requiring social distancing and also in accordance with relevant SEBI norms.