IDFC First Bank approves ₹7,500 crore fundraise from Warburg & ADIA arms, shares up; what we know

The stock is trading 0.87% higher at ₹63.87 apiece on the National Stock Exchange (NSE) at 11:31 am.

In an exchange filing, the company said its board gave the green light to a preferential issue of equity capital worth ₹4,876 crore to global growth investor Warburg Pincus LLC's affiliate Currant Sea Investments BV and ₹2,624 crore to Abu Dhabi Investment Authority's wholly owned subsidiary Platinum Invictus B 2025 RSC Limited.

The lender will be issuing 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) at a price of ₹60 per CCPS to Currant Sea Investments BV and 43,71,85,666 CCPS to Platinum Invictus B 2025 RSC.

The bank said that, over the last six years, its deposits grew six times, loans and advances doubled, and CASA ratio improved from 8.7% to 47.7%.

PAT rose from a loss of ₹1,944 crore in the financial year 2018-19 (FY19) to a profit of ₹2,957 crore in FY24. However, profit dipped in 9M FY25 because of industry-wide challenges in microfinance.

The fundraise will increase overall capital adequacy from 16.1% to 18.9%, powering the bank's balance sheet.

V Vaidyanathan, Managing Director and CEO of IDFC FIRST Bank, said, "The Bank has firmly moved into profits and is now at a pivotal stage, where our income growth is expected to consistently exceed OPEX growth, leading to improved operating leverage."

"We expect many businesses which are in the investment stage to turn profitable with scale. It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder," he added.

IDFC FIRST Bank operates 971 branches and offers services across retail, rural, MSME, corporate, private banking, FASTag, wealth management, cash management, NRI, and treasury solutions.