CCI Approves Warburg Pincus’ Plan to Acquire Nearly 10% Stake in IDFC First Bank

The Competition Commission of India (CCI) has approved the proposed acquisition of up to 9.99% of IDFC First Bank’s paid-up share capital by Currant Sea Investments BV, an affiliate of US-based private equity firm Warburg Pincus. The deal involves a subscription to 81.26 crore compulsorily convertible cumulative preference shares (CCPS).

Warburg Pincus Stake Purchase in IDBI First Bank

Currant Sea Investments and Platinum Invictus B 2025 RSC, an arm of the Abu Dhabi Investment Authority, are jointly investing ₹7,500 crore in IDFC First Bank. As part of this, ₹4,876 crore will be invested by Currant Sea and ₹2,624 crore by Platinum Invictus. The shares are priced at ₹60 each.

Shareholder Vote Outcome

Earlier, shareholders of IDFC First Bank voted on a resolution to appoint a non-retiring board member from Currant Sea. The proposal failed to pass, with only 64.1% of shareholders voting in favour, short of the 75% required for approval.

Read more: Listed Banks Record ₹94,228 Crore Profit in Q4FY25!

Following the vote, IDFC First Bank has been in discussions with domestic institutional investors to address concerns related to board appointments. These conversations come amid the ongoing investment process involving foreign entities.

Financial Performance

In Q4 FY25, the bank reported a 58% year-on-year drop in net profit to ₹304 crore due to higher provisioning. Net profit stood at ₹724 crore in the same quarter of the previous year. Total income rose to ₹11,308 crore from ₹9,861 crore, while interest income increased to ₹9,413 crore from ₹8,219 crore.

Share Price Performance

As of 09:40 AM on June 4, 2025, IDFC First Bank share price was trading at ₹66.68, a 0.45% decrease, with a 0.97% increase over the past 6 months and a 7.86% drop over the past year.

Conclusion

With the CCI approval in place, Warburg Pincus is set to acquire a significant minority stake in IDFC First Bank. However, shareholder reservations over board representation remain a key issue as the investment process continues.

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