Private equity major Warburg Pincus is likely to exit IDFC First Bank by selling its entire 2.3% stake in the lender through block deals on Thursday, according to news reports.
Cloverdell Investment, 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.
