IDFC FIRST Bank said on 17 April 2025 that its board had approved raising about Rs 7,500 crore through a preferential issue of equity capital in the form of compulsorily convertible preference shares (CCPS) to entities linked to Warburg Pincus and the Abu Dhabi Investment Authority (ADIA).
ADIA will invest approximately Rs 2,624 crore through Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary managed by ADIA's Private Equities Department. Warburg Pincus, the larger investor, will put in approximately Rs 4,876 crore through its affiliate Currant Sea Investments B.V. The issue is subject to shareholder and regulatory approvals.
CAPITAL POSITION
The bank said the fresh capital would lift its capital adequacy ratio from 16.1 per cent to 18.9 per cent, based on its capital position as at 31 December 2024, with a common equity tier-one ratio of around 16.5 per cent.
Managing Director and Chief Executive V Vaidyanathan said: “From day one, we have always built our foundation of the Bank with a long-term vision of building a world class bank in India. We are building a culture of empathy for customers and strive to offer highest levels of customer service.” He added that the bank had “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.”
BACKGROUND
IDFC FIRST Bank was formed in December 2018 through the merger of IDFC Bank and Capital First. The bank said the capital raise would strengthen its balance sheet and position it for “strong and self-sustaining profitable growth”.