Warburg Pincus likely to sell entire 2.3% stake in IDFC First Bank via block deals: Report
Warburg Pincus affiliate Cloverdell Investment may offload 15.9 crore shares. The floor price is set at Rs 75 apiece. Cloverdell is hoping to rake in Rs 1,191.40 crore through the sale, reports said.
Private equity major is likely to exit by selling its entire 2.3% stake in the lender through block deals on Thursday, according to news reports., an affiliate of Warburg Pincus, is likely to offload 15.9 crore shares and has set a floor price of Rs 75 apiece. It is looking at raking in Rs 1,191.40 crore through the sale, reports said.
On Wednesday, shares of IDFC First Bank closed 0.3% higher on the BSE at Rs 77.81.
In September last year, Cloverdell Investment divested a 4.2% stake in IDFC First Bank 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 nearly 47% 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
