IDFC First Bank shares fall 3.5% as Warburg Pincus likely exits via block deal
IDFC First Bank's shares dipped 3.5% as Warburg Pincus exited through block deals. The bank reported an 18.4% growth in net profit for the quarter, with investors clocking returns at 43% in the last one year.
Shares of on Thursday fell 3.5% to the day's low of Rs 75.10 after private equity firm likely exited the private sector lender through block deals.A large block deal in which around 2.6% equity changed hands was noticed on the counter this morning. While the buyers and sellers of the deal are not known, Warburg Pincus' affiliate Cloverdell Investment was looking to offload 15.9 crore shares or its entire 2.3% equity stake in IDFC First Bank.
The PE firm had set a floor price of Rs 75 apiece for a deal worth nearly Rs 1,200 crore.
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In September last year, Cloverdell Investment divested a 4.2% stake in for Rs 2,480 crore through block deals. Then GQG Partners’ Rajiv Jain acquired a 2.6% stake in the bank for Rs 1,527 crore.
In December, the private equity firm, through another affiliate Dayside Investment, sold a 1.3% stake or 9.17 crore shares in the private sector lender for Rs 790 crore. Dayside now holds no stake in the bank.
In the last one year, shares of IDFC First Bank gave over 43% returns to investors, much better than many of its larger peers.
For the quarter ended December, the lender reported an 18.4% growth in net profit to Rs 715 crore on the back of strong net interest income and improved asset quality.
Source: Stocks-Markets-Economic Times
