Warburg Pincus, ADIA units to invest $877 million in IDFC FIRST Bank

The board of directors, at its meeting held today, approved a preferential issue of equity capital amounting to approximately Rs 4,876 crore to Currant Sea Investments B.V.

The board of India's IDFC FIRST Bank has approved raising up to Rs 7,500 crore ($877 million) from affiliate firms of Warburg Pincus and the Abu Dhabi Investment Authority to fuel its next phase of growth, the lender said on Thursday.

The entities will invest the funds for a combined 15 per cent stake in the mid-sized private lender which has 971 branches, a loan book of Rs 2.31 trillion and a deposit base of Rs 2.27 trillion.

The proposed fund raise will increase the book value per share of IDFC FIRST Bank by 2.3 per cent, it said in a statement. ALSO READ | IDFC First Bank slips 4% after board approves ₹7,500 crore fund raise

 

The plan is subject to regulatory and shareholder approvals.

Currant Sea Investments B.V., an affiliate company of global growth investor Warburg Pincus, will invest Rs 4,876 crore for a stake of 9.8 per cent. While Platinum Invictus B 2025 RSC, a wholly-owned subsidiary of ADIA, will invest about Rs 2,624 crore for a 5.10 per cent stake, the bank said.