IDFC First Bank Shares Rise as GQG Partners Increases Stake in Block Deal

12 Sep 2023 , 01:44 PM

IDFC First Bank’s shares saw a modest 2 % increase on September 11 following a stake hike by US boutique investment firm GQG Partners. The block deal involved approximately 5.1 crore shares, equivalent to a 0.8 % stake in the bank, with an average floor price of Rs 94.50, representing a nearly 1 % discount from the previous closing price of Rs 95.35.

Reports by CNBC-TV18 indicated that GQG Partners, led by Rajiv Jain, acquired the shares in this block deal from the bank’s MD and CEO, V Vaidyanathan. Vaidyanathan clarified that the proceeds from the stake sale would be used to subscribe to fresh shares and not for personal consumption. Following the sale, he retains slightly over a 1 % stake in the bank.

Earlier, on September 4, GQG Partners purchased a 2.6 % stake in the Mumbai-based private lender for Rs 1,527 crore. This acquisition drove IDFC First Bank’s shares to a record high of Rs 100.70. Additionally, Cloverdell Investment, the largest public shareholder in the bank, sold a 4.2 % stake at an average price of Rs 89, which is believed to have been partially acquired by GQG Partners.

As of June 30, Cloverdell held a 7.12 % stake in the bank. IDFC First Bank’s shares have seen an impressive 64 % surge year-to-date, elevating it to the list of India’s top 10 most valuable listed lenders with a valuation of Rs 65,325 crore, replacing Union Bank of India and Canara Bank.

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