IDFC First Bank Block Deal with GQG Partners
Shares of IDFC First Bank witnessed a remarkable 2% increase in value on September 11, driven by a significant development. The US boutique investment firm, GQG Partners, raised its stake in the bank through a substantial Rs 479.50-crore block deal.
In today’s block deal, approximately 5.1 crore shares, equivalent to a 0.8% stake in the company, changed hands at an average floor price of Rs 94.50. This price represented a nearly 1% discount from the stock’s closing price on the previous Friday, which stood at Rs 95.35.
According to a report by CNBC-TV18, GQG Partners, led by Rajiv Jain, acquired these shares in the block deal from IDFC First Bank’s Managing Director and CEO, V Vaidyanathan. The report further mentioned that the proceeds from this stake sale would be utilized to subscribe to fresh shares.
Vaidyanathan confirmed to CNBC-TV18 that the primary reason for the stake sale was to secure funds for subscribing to stock options, amounting to Rs 229 crore. He emphasized that none of the proceeds from the share sale would be used for personal purposes. Following this transaction, Vaidyanathan retains slightly over a 1% stake in the bank.
As of 12:16 p.m., IDFC First Bank’s shares were trading at Rs 96.55 on the National Stock Exchange, representing a 1.2% increase.
Notably, on September 4, GQG Partners had acquired a 2.6% stake in this Mumbai-based private lender, in a deal valued at Rs 1,527 crore. This move by GQG Partners played a pivotal role in pushing IDFC First Bank’s shares to a record high of Rs 100.70 the previous week.
It’s worth mentioning that Cloverdell Investment, the bank’s largest public shareholder, had recently sold a 4.2% stake at an average price of Rs 89. It’s likely that GQG Partners acquired a portion of this stake. As of the company’s shareholding data on June 30, Cloverdell had held a 7.12% stake in the bank.
IDFC First Bank’s shares have experienced a remarkable surge of over 64% since the beginning of the year. This exceptional performance catapulted IDFC First Bank into the exclusive ranks of India’s 10 most valuable listed lenders as of September 4, surpassing Union Bank of India and Canara Bank with a valuation of Rs 65,325 crore.
About IDFC First Bank:
IDFC First Bank is an Indian private sector bank established through the amalgamation of the banking division of Infrastructure Development Finance Company and Capital First, an Indian non-bank financial institution.
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