IDFC First Bank slips ~3.5% as Warburg Pincus offloads stake worth ₹1,386 Crore

28 Mar 2024 , 11:28 AM

IDFC First Bank shares fell 3.5% in early trade on March 28, following a block sale of ₹1,386 Crore on the markets. The deal involved the transfer of about 18.3 crore shares of IDFC First Bank, representing a 2.6% ownership.

At around 11.09 AM, IDFC First Bank was trading 2.51% lower at ₹75.85, against the previous close of ₹77.80 on NSE. The counter plunged to an intraday low of ₹75.05.

Cloverdell Investment was trying to sell its whole 2.25% interest in the company, or 15.9 crore shares, for at least ₹1,191.40 Crore, according to sources. According to the report, Morgan Stanley most likely mediated the purchase.

Warburg Pincus already lowered its stake in IDFC First Bank. In December, Warburg Pincus sold a 1.3% interest in the private lender to Cloverdell Investment for ₹790 Crore in an open market deal.

The Warburg Pincus affiliate sold a 4.2% interest in IDFC First Bank in September for ₹2,480.34 Crore. Cloverdell Investment owned 7.12% of the private lender at the conclusion of the first quarter of fiscal year 24.

Cloverdale Investments Limited was formed in 1958. The Company’s line of business comprises holding or owning bank securities with the express intention of exerting some degree of influence over the conduct of the bank companies whose securities it owns.

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