Share price of IDFC First Bank surged 2% today after private equity giant Warburg Pincus approached the Competition Commission of India (CCI) for approval to acquire just under 10% stake in IDFC First Bank.
The deal in detail
As per the regulatory filling submitted on April 28, Warburg Pincus plans to pick up a 9.99% stake by subscribing to over 81 crore compulsorily convertible cumulative preference shares of IDFC First Bank. This investment, if cleared, would give the firm a foothold in one of India’s rising private lenders.
IDFC First Bank: Abu Dhabi Investment Authority also steps in
In addition to it, Abu Dhabi Investment Authority’s arm, Platinum Invictus B 2025 RSC, is also eyeing a major stake. It intends to subscribe to 43.72 crore preference shares, which could slightly dilute Warburg Pincus’s final holding to 9.48%.
IDFC First Bank: No red flags, say investors
Both Warburg Pincus and ADIA have submitted that their investments will not disturb market competition or raise any regulatory concerns. They argue that the deals won’t affect India’s banking sector dynamics or result in any adverse competitive impact.
IDFC First Bank shares
IDFC First Bank shares have seen a mixed run across different timeframes. Over the past five trading sessions, the share price of IDFC First Bank slipped around 3%, even as it posted a healthy 13% gain in the last one month. However, its six-month performance tells a more muted story, with a decline of about 1.4%. Zooming out further, the bank’s shares have shed nearly 20% over a longer horizon. Yet, in 2025 so far, the stock has managed to hold its ground, inching up by 1.12%. With a market capitalisation of Rs 47.51 crore, the stock is currently trading between its 52-week high of Rs 84.50 and a low of Rs 52.46 per share.
