IDFC First Bank Raises 7500 Crores through Preference Shares

IDFC First Bank is planning to raise Rs. 7,500 crore of fresh equity capital through the issuance of Compulsorily Convertible Preference Shares (CCPS) at a price of Rs. 60 per share.

Compulsorily Convertible Preference Shares amounting to Rs. 4,876 crore to be issued to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC, and CCPS amounting to Rs. 2,624 crore to be issued to Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), managed by its Private Equities Department.

Currant Sea Investments B.V. to hold 9.48% and Platinum Invictus B 2025 RSC Limited to hold 5.10% of the Bank on a post-money basis on conversion of Compulsorily Convertible Preference Shares.

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Mr. V Vaidyanathan, Managing Director & CEO, IDFC FIRST Bank: “From day one, we have always built our foundation of the Bank with a long-term vision of building a world-class bank in India. We are building a culture of empathy for customers and strive to offer the highest levels of customer service. We are technologically advanced and continue to stay cutting-edge. The Bank has firmly moved into profits and is now at a pivotal stage, where our income growth is expected to consistently exceed OPEX growth, leading to improved operating leverage. We expect many businesses that are in the investment stage to turn profitable with scale. It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans and for investing in us even under volatile global situations.”