Warburg Pincus has filed a request with the Competition Commission of India (CCI), seeking approval to acquire a 10% stake in IDFC First Bank.
The investment will be made through Currant Sea Investments, a subsidiary of the US-based private equity firm.
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According to the notice filed with the CCI, Currant Sea Investments BV intends to purchase up to 9.99% of IDFC First Bank’s paid-up share capital via the subscription of 81,26,94,722 compulsorily convertible cumulative preference shares.
Additionally, Platinum Invictus B 2025 RSC, associated with the Abu Dhabi Investment Authority (ADIA), plans to subscribe to 43.72 crore preference shares in IDFC First Bank.
The combined investment from Currant Sea Investments and Platinum Invictus B 2025 RSC is projected to total approximately Rs75bn ($885m), aimed at supporting the bank’s growth initiatives.
The board of directors of IDFC First Bank has approved a preferential issue of equity capital amounting to around Rs48.76bn ($575m) to Currant Sea Investments and approximately Rs26.24bn ($309m) to Platinum Invictus B 2025 RSC.
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By GlobalDataThese proposed capital issues are pending shareholder and regulatory approvals.
Warburg Pincus financial services global co-head and Asia private equity head and managing director Vishal Mahadevia said: “We believe the Indian banking sector presents an exciting opportunity and is poised for long-term growth.
“At Warburg Pincus, we have a long track record of partnering with exceptional teams.”
IDFC First Bank operates 971 branches across 60,000 locations in India, combining a physical presence with a digital-first approach.
It offers a comprehensive range of banking services, including retail, MSME, rural, corporate, wealth management, private banking, and treasury solutions.
IDFC FIRST Bank managing director & CEO V Vaidyanathan said: “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 highest levels of customer service. We are technologically advanced and continue to stay cutting-edge.”
In 2022, IDFC First Bank announced the acquisition of Vaya Finserv’s microfinance loan portfolio for approximately Rs10bn ($120.7m), according to Hindubusinessline.
