idfc first bank block deal: Warburg Pincus offloads 1.3% stake in IDFC First Bank for Rs 790 crore

US-based private equity firm Warburg Pincus sold its partial stake in IDFC First Bank through block deals on Thursday.

Warburg Pincus, through its affiliate Dayside Investment, offloaded 9.17 crore shares or 1.3% in the private sector lender. The transaction was done at Rs 86.1 apiece, taking the deal value to Rs 790 crore.

It is unclear who the buyers were in the transaction.

As of September-end, Dayside Investment held 1.3% in the company. Cloverdell Investment, another affiliate of Warburg Pincus, also holds a 2.74% stake in IDFC First Bank.

At the end of the June quarter, Warburg Pincus affiliates Cloverdell Investment and Dayside Investment had a holding of 8.5%.

In September, the PE firm, through Cloverdell Investment, had sold a 4.2% stake in IDFC First Bank for Rs 2,480 crore through block deals. Meanwhile, Rajiv Jain-backed GQG Partners had acquired 2.6% stake in the lender for Rs 1,527 crore.

Foreign portfolio investors have been raising their holdings in the bank consistently for the last three quarters. As of September-end, FPIs cumulatively held 26.06% stake, compared to 19.31% as of March-end.In five sessions since November 30, shares of IDFC First Bank have gained 6.5%, but since the last sale by Warburg Pincus on September 1, the scrip has corrected by more than 3%.

On Thursday, the company’s shares fell nearly 3% at Rs 87.75 on NSE.

Year-to-date, the stock has been among the best performers in the private sector pack and has outperformed most of its peers, by gaining nearly 54%.

The stock was recently added by global index aggregator MSCI Inc to its MSCI India index.

For the September quarter, the merger-bound lender reported 35% on-year growth in net profit to Rs 751 crore, while net interest income grew 32% to Rs 3,950 crore.

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